fmg and iron ore fundamentals

Just thinking,

With regards to the apparent slowdown in Steel production in China of late combining with BHP, RIO and CVRD aggressive expansion does anyone know or have references to whether the overall iron ore market will be in Surplus...maybe not immediately but maybe by 2010 or 2011

There has been alot of focus on China's slowdown recently however if I am not wrong only 6 months ago the big three titans of Iron Ore were executing plans to ramp up their production heavily.

If there were to be a surplus then FMG lower grade ore may find it very hard to sell

Look what the Chinese did with MGX..."Oh sorry pal we don't need your ore just yet...can you just delay the shipment for us...ridiculous...but then what can you do when they are protected by their law"

I know with bulk commodities you just cannot switch the off button anytime you want.

I also have had 5 mates who are geologists, 2 miners and 2 drill contractors who have recently been told to "pack your bags" ...in the past 4 weeks...so if this are the signs then Australia's mining industry will be in big trouble soon...maybe our politicians should wake up to reality and maybe assist the industry (especially WA)

I am more than happy to be proven wrong (meaning with factual research)