The Chinese are just exploiting the negativity surrounding their recent decline in IO consumptions to make a point to the big guns at the negotiation table. I am not surprised by the actions from the Chinese. More of these 'sable rattling' will happen especially when we are so close to the yearly IO price agreements.
I seem to get mix signals as to the consumptions of IO by the Chinese. This article points to the declining IO consumption whether artificial or as a reflection of the world recession but AGO, latest miner, has managed to strike long term contracts for their ores and are ramping up drilling. Does that sound s like Chinese are taking less ores?
Here is my forecast, If the Chinese can't get a meaningful reduction of yearly IO prices in April, they will want to pressure Rudd for a more sympathetic ear to 'get the ball rolling'.
UMC Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
