The monopoly in iron ore pricing is damaging China 's economy and should be opposed, a senior research fellow at a Chinese state research center said Tuesday.

"There is a monopoly in pricing and price is not decided by supply and demand," Hu Jiangyun said at a United Nations forum here.

BHP Billiton Ltd. (BHP), Rio Tinto PLC (RTP) and Brazil 's Vale SA (VALE, VALE5.BR) dominate the supply of iron ore to Chinese steelmakers.

Hu said iron ore prices in China are above $100 a metric ton, double the level seen in 2002.

Hu said that Chinese steel makers and other iron ore consumers in the country lost 700 billion yuan ($102 billion) over six years due to the high price of the material. He blamed the monopoly on pricing held by Rio Tinto, Vale and BHP.

"As an emerging economy China suffers a lot--it bears the high cost of iron ore and there needs to be better co-ordination in pricing markets," he said.

He said unsound pricing policies would have a large impact on the global economy as China is an engine of growth.

"We hope the price will be kept stable and unreasonable market transactions should be opposed," Hu said.
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