BANGALORE, INDIA--(MARKET WIRE)--Aug 28, 2008 -- Researched by Industrial Info Resources (Sugar Land, Texas) -- In a bid to counter the adverse effects of soaring iron ore prices and secure a stable supply of raw material, Japanese steel majors are teaming up to jointly acquire overseas iron ore mining rights and share the purchase costs among themselves. The consortium is initially eyeing a stake in the Namisa iron ore mines in Brazil owned by Companhia Siderurgica Nacional (SID - News) (Rio de Janeiro), the largest integrated steel manufacturer in the country. However, the group is up against stiff competition from international steel majors such as ArcelorMittal (NYSE:MT - News) (Luxembourg). With Vale (NYSE:RIO - News) (Rio de Janeiro), BHP Billiton (NYSE:BHP - News) (Melbourne, Australia) and Rio Tinto (NYSE:RTP - News) (London) controlling well over 70% of the global seaborne iron ore industry, the oligopoly in the market has led to an increase in procurement costs and denies Japanese steelmakers the privilege of negotiations and bargaining power.

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