Chinese steelmakers inflict more pain on small miners

Singapore

CHINESE steelmakers are unwittingly helping the world's biggest iron ore miners tighten their grip on global production by demanding to pay for shipments of the raw material based closely on depressed spot prices.

The three largest and most profitable iron ore producers - Australia's Rio Tinto and BHP Billiton, along with Brazil's Vale - have been happy to sell at or near spot despite plunging iron ore prices, while their smaller rivals struggle to make money.