European steel trade's spat with Vale gathers pace

The steel and iron ore industries just cannot get along.

The latest exchange in the tit-for-tat row between the two had the steel trade body describing suggestions it should be investigated for price fixing as "absurd".

Yesterday Vale, the Brazilian iron ore giant, asked the European Commission to open an inquiry.

That followed allegations by European steel industry body Eurofer that Vale had abused its position as the dominant player in the field.

Eurofer today came back with its own jab. The head of Eurofer, Gordon Moffat, said: "This is an absurd attempt by Vale to divert attention from legitimate concerns expressed by consumers. I'm sure the commission will see it as such."

Vale said yesterday it had notified the European Commission about its concerns that Eurofer members may have breached competition rules by communicating among themselves in ways that breach the law.