BEIJING -(Dow Jones)- The changes to the iron-ore pricing system indicate the noncompetitive nature of the seaborne iron-ore business, said Ian Christmas, director-general at the World Steel Association, on Sunday. 
Speaking to a steel conference in Beijing, Christmas said the ability of mining companies to impose such fundamental changes in the structure of the business indicates the noncompetitive nature of the seaborne iron ore business with an overconcentration of supply in just a few hands. 
Vale SA (VALE) of Brazil, and Australian companies BHP Billiton Ltd. (BHP) and Rio Tinto PLC (RTP) account for almost 75% of world iron ore output. 
Christmas' comments reiterated the association's view when he last month called for competition authorities around the globe to investigate the iron ore market. 
The admission of China Iron and Steel Association, one of the main negotiators for China in the annual ore negotiations, that Chinese mills have struck private contracts with global miners to secure a smooth operation marked the final victory of ore miners in their promotion of a more market-related pricing system in the Asia market. 
Christmas said the movement from annual contracts to quarterly spot pricing seriously increases the volatility of steel costs and prices and cannot be in the interest of steel users and the society as a whole. 
He also expressed dissatisfaction toward the high increase of the iron ore price, saying "there seems to be no justification for the over 100% increase in the cost of seaborne iron ore and metallurgical coking coal, other than to increase the already excess profitability of major mining companies." 
The association has 180 members, including 19 of the world's 20 biggest steelmakers. 
-Yajun Zhang contributed to this article; Dow Jones Newswires; 8610 8400-7799; yajun.zhang@dowjones.com 
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