Point in fact.....$62.00 a tonne doesn't leave much room for error....yikes!
2121 GMT [Dow Jones] Mt Gibson (MGX.AU) says a number of its customers have asked for delays of iron ore shipments in 2Q, says Chinese iron ore demand slowing. "Customer and iron ore sector analysis indicates a slow down in demand for iron ore in China due to current economic uncertainty and the tightening of credit facilities," MGX says. With steel prices falling and iron ore stockpiles growing in China, the Mt Gibson announcement is the first sign that there may be an impact on Australia's sales of the key export commodity. Mt Gibson says not obliged to agree to customers requests and will hold discussions; says could modify its operations and production targets if required. One analyst says the news will put "the fear of God" into any marginal iron ore projects in Australia. Says could signal Chinese traders are not buying and a falling spot price is now likely to curtail planned spot sales by majors like Rio Tinto (RIO.AU).(APW)
TTY Price at posting:
25.0¢ Sentiment: None Disclosure: Held
