No argument from me with respect to a drop off in iron ore demand, it would be naive of me to suggest otherwise.
The dilemma facing iron ore producers is trying to calculate the impact on Chinese demand for iron ore. Get that right and you come out the other side with a distinct advantage over your competitors.
To what point do the majors call the Chinese bluff?
What Rio pointed out is where I'm coming from:
"We believe this will be a short, sharp slowdown in China, with demand rebounding over the course of 2009, as the fundamentals of Chinese economic growth remain sound."
But you ask the Chinese and I bet they give you a different outlook!
UMC Price at posting:
68.0¢ Sentiment: Hold Disclosure: Held
