iron ore price, page-539

BHP yesterday announced some cost-cutting measures. But it is believed that the capital freed up will be applied to its copper division.

It’s shifting investment into copper and petroleum, he said

Can you post the article or a link, please

My information came from a DJ Newswire release yesterday. But I think it was pretty much quoting what was said at the BHP meeting. Not much direct relevance to iron ore that I can see.

I disagree that the Chinese want the Fe price much lower. They know that if they try to force it too low, producers WILL react, either by small producers ceasing operations, and/or the big companies turning their attention elsewhere, ala BHP and copper switch statement yesterday.

If that happens, even a small increase in demand next year could cause a dramatic price rise. The companies would once again be in control.

So I think China will be very careful from here on, and that is also a reason why I think FMG has not got the problem that many seem to think it has. They have the best Chinese contacts.