Europe's steelmakers blamed concentration in the global mining industry for soaring ore prices and warned regulators against a proposed merger of giants BHP Billiton and Rio Tinto.

Mr Gordon Moffat DG of European Confederation of Iron & Steel Industries said that "Over concentration in the supply chain of steelmakers has resulted in an explosion of prices. Ultimately, these extra costs will have to be passed on to the consumer. This will inevitably result in higher prices for steel in Europe and worldwide."

Mr Moffat said that the executive EC should scrutinize carefully whether mining giant BHP Billiton's hostile bid to take over Rio Tinto would breach EU competition rules. He added that "We urge the EU and the member states to react firmly on the BHP Rio merger which is not in the interest of the consumer."

Mr Moffat said that "If the three price setters would be reduced to only two, this could lead to even higher prices for raw materials and to a lower incentive for mine expansion."

Eurofer represents European firms with total annual turnover of EUR 140 billion and direct employment of 370,000 people, producing 200 million tonnes of steel per year.