The global steel industry, including Chinese producers, have opposed the consolidation deal between two of the world's largest miners, BHP Billiton Ltd and Rio Tinto, on the grounds that it could lead to a monopoly control of key iron ore assets.

The two Australia-based companies last Friday agreed to set up an iron ore joint venture after Rio Tinto scrapped Aluminum Corp of China's (Chinalco's) plan for a $19.5 billion investment in the former.

The proposed joint venture would control most of Australia's iron ore resources. The deal will see just two suppliers -- the Australian joint venture and Brazil's Vale -- controlling 70 percent of global iron ore trade, industry warned.