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May 25 (Bloomberg) -- Steelmakers in China and South Korea, the world’s largest- and sixth-biggest producing nations, will meet today in Beijing to discuss rising raw material prices.

Mills, including Posco and Baoshan Iron & Steel Co., share the view that “sharp gains” in the prices of iron ore and coal may lead to higher production costs of cars, ships and appliances, South Korea’s Ministry of Knowledge Economy said in an e-mailed statement today. Government officials will attend the regular meeting, it said.

The steelmakers are concerned about a proposed iron ore venture between BHP Billiton Ltd. and Rio Tinto Group because the move may hurt competition, the statement said. The change this year to pricing iron ore and coal on quarterly contracts from annual terms also has the mills concerned, the statement said.

To contact the reporter on this story: Sungwoo Park in Seoul atspark47@bloomberg.net.

Sourced from www.bloomberg.com