Chinese companies consider deal for iron ore giant

Chinese companies consider deal for iron ore giant A cadre of China's steelmakers, with the backing of Beijing, are reportedly eyeing a joint bid to buy Brazil's Rio Tinto Group, one of the world's largest producers of iron ore.
   According to a report in the Economic Times, the bid is pondered to counter a rival bid by Australian giant BHP Billiton worth more than $134 billion.
   The steelmakers are concerned about securing a steady source of imported iron ore, as China is the world's largest importer of the raw material that is key to producing steel.
   The story said the deal could have a significant effect on Indian iron ore exports to China, as 90 percent of the country's exports currently go to the neighboring Asian power. Additionally, most Indian iron ore exporters trade on the spot market, as opposed to Brazilian and Australian companies, who typically lock in long-term contracts.