You may have your facts wrong there dargie"And what matters to...

You may have your facts wrong there dargie

"And what matters to miners such as BHP is that China's steel mills are showing signs of life. Iron ore (which becomes steel in a steel mill) is the most important product to BHP. Over the past few months, the Chinese have not been using their Australian iron ore. Now, all of a sudden as the Chinese mills are firing again, 68 million tonnes of iron ore that had been sitting on the dock of China's bays is gone.

BHP chief executive Marius Kloppers said at the results presentation: "The destocking (of China's iron ore) is now essentially complete." In fact, Kloppers was the second company boss to put the "steel surprise" on public record in two days. On Tuesday, Andrew Forrest of Fortescue said the same thing at the Melbourne Mining Club. As the news filtered through the investment markets, BHP's share price began to gain momentum. And as the analysts finally stopped thinking about the Rudd stimulus and whether they had pink batts in the attic, the Chinese themselves — led by Chinalco aiming to tighten its grip on Rio and a host of smaller deals — were moving to pick top-class mining assets across the nation."

http://business.theage.com.au/business/bhp-revival-could-be-worth-all-the-pink-batts-in-china-20090207-80d8.html