Regarding iron ore, the terms of reference point to various supply concerns that include:
Access to rail and port capacity and impact on emerging iron ore miners: the inquiry will investigate if allocations of capacity on the ORYX line are done in a competitive and non-discriminatory way and whether these arrangements can impede participation and expansion of emerging miners to export iron ore.
Pricing, as the reliance on imports in some markets allows local producers to set their prices at import parity levels.Review ownership patterns of steel mills and assess historical and current industrial policies in place to support steel producers. “It will be interesting to see how the Commission weighs the consideration of small- and medium enterprises owned by formerly disadvantaged people with the acknowledged high capital costs required to establish a steel plant and mine and supply iron ore,” Granville says.
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Competition watchdog issues draft steel industry inquiry termsCompetition Commission says certain market features impede, distort or restrict competition in local sector
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