Security of supply (1 of 3 key points in the NDRC strategic statements) is something that bugs the Chinese. Africa is the only serious salvation.
Considering China's domestic production is plummeting (in terms of concentrates produced), even assuming China's steel consumption doesn't rise, there are still 600MTA of low grade Chinese ore than has to be progressively replaced by imports.
The deeper they get and the lower the grade, the more cost involved and more energy required (pollution) to process the domestic crap.
SDL Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
