Industry insiders call for fair reporting amid soaring iron ore prices
The blatantly misleading overseas media reports about Australia's iron ore trade with China have destabilized the market and possibly contributed to soaring prices, said industry insiders, who spoke of the need to avoid market panic as it will only bring unnecessary disruption for the supply chains on both sides.
The Guardian reported on Sunday that Australia's losses from trade tensions with China are being offset by rising iron ore prices, which followed by another report by the Daily Mail suggesting Australia could put a levy on iron-ore exports to China.
China's steelmakers are understandably frustrated as they watch the price of iron ore - the commodity on which they are so dependent - soar into the stratosphere and eat away at their profits, the Sydney Morning Herald reported on Tuesday, noting that the most frustrating element is there is little they can do about it.
The report claimed that the soaring price is determined by supply and demand and one of the major reasons the price is rising so much is that China's appetite for iron ore is increasing faster than supply.
However, industry insiders said that although the bilateral tensions on both sides have caused rising market uncertainty, some provocative media reports have also played a negative role by adding fuel to the fire and destabilizing the situation more.
A source with Rio Tinto told the Global Times on Wednesday that there are cases of over-reporting and over-interpretation by the media when it comes to the iron ore exports, without elaborating on the details.
