The association said “a huge volume” of low-priced imported iron ore has severely impacted the domestic mining industry and represents a “big challenge” for the security of the local steel production. According to the local Chinese association, capacity from major producers has continued to increase and requires “a massive Chinese market to absorb their great excess.”

Imports have accounted for about 85 percent of China’s total iron ore consumption, leading domestic miners in China to shutdown or diminish capacity utilization. The association also accused Vale, Rio Tinto and BHP Billiton for dominating the global iron ore trade defying and expanding the market, “despite prices being low, since their strategy is to use low-priced dumping to crowd out higher-cost miners.”