China calls for Rio Tinto boycott

The China Iron & Steel Association, which comprises major domestic mills, called on steel mills and iron-ore traders to boycott iron ore supplies from Rio Tinto, aleging that the Austrialian miner isn’t meeting its contract supply obligations, the Wall Street Journal reported. The association accused Rio Tinto of taking advantage of higher spot iron-ore prices, saying the miner told Chinese mills it didn’t have enough ore to fulfill contracts, but was meanwhile offering additional ore on the spot market. Rio Tinto, which supplied 52.37 million metric tons of iron ore to China last year, called the joint action "a very concerning development." Rio Tinto has been the subject of a hostile takeover bid from BHP Billiton, and is pushing for a higher iron-ore price to help bolster its defense against the bid.