ABC Radio reported that Mr Hajime Bada president of JFE Steel has reaffirmed the opposition to BHP Billiton's acquisition of Rio Tinto. ABC Radio reported that Japan's second largest steel maker, JFE Holdings Inc, believes that the deal would be detrimental to the Japanese steel industry as the merged group would have too much pricing power in the iron ore market.

Mr Bada also the chairman of Japan Iron and Steel Federation said that 70% control of iron ore seaborne trade by major 2 companies including Vale is almost monopoly. He expects competition authorities in Australia, Europe and Japan would reject the merger to prevent excessive concentration.

Mr Bada told the news organisation that while Japan does not have the ability to block the deal, the industry is lobbying corporate regulators in Australia and the European Union to closely monitor the deal.

Mr Bada was also concerned about China's state owned aluminium giant Chinalco, in concert with Alcoa Inc, gaining a 9% stake in the Rio Tinto group last week. He said 'We have to bring to light the very big issue, which is that China is a country that has very significant foreign reserves and the state may use them in support of its industry.”