Nev says FMG is a takeover target, page-3

FMG says it thinks the iron-ore market is broadly in balance--and that it has no plans to cut back on its own output of ore. Marketing chief David Liu says Chinese ore production is already falling, and he estimates another 50-70 million tons could be shuttered this year without a recovery in prices or subsidies from Beijing. Another 80-100 million tons of supply from foreign sources is also "in the process of exiting the market," he says. Fortescue argues the recent drop in China's port stockpiles illustrates the market has balanced. Liu argues China will continue to have a huge thirst for iron ore as its economy expands from a bigger base. "China urbanization and industrialization story is not going away," he says. We are being circled