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Nippon Steel warns against oligopolies

The chairman of one of Japan's largest steel producer has warned of too much integration in Australia's resource sector and called for a crack down on potential oligopolies, as BHP Billiton and Rio Tinto proceed to merge their Pilbara mining operations.

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Nedlands, WA
Talk about the pot calling the kettle black! The Japan Inc. steel cartel was one of the tightest-run oligopolies that ever existed (before China far surpassed Japan's steel production). The market share of the top steel producers essentially never varied no matter whether aggregate demand was at a peak or a trough, the steel industry being as cyclical as it is. The way the Japanese steel industry 'self-regulated' would have sent executives to jail in Australia!

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