I dont know what to make of it. Its a real eye-opener alright....

I dont know what to make of it. Its a real eye-opener alright. The 12mths stockpile(s) in China is a big worry. But it seems China is deliberately causing this situation, to get the price down, by stockpiling ore and going slow on their major infrastructure projects. (Opposite of what they say.)

I read that BHP recently has had to send spy planes across China to find out the truth on the stockpiles, steel production and economic activity. They subsequently decided to scale up production capacity of iron ore, believing the slowdown is deliberate and temporary. RIO has also decided to divert its efforts to producing huge stockpiles of iron ore in the Pilbara in readiness for normal consumption to resume rather than shut mines. (So China is foxing. They need the stuff but are pretending that they don't?)

No doubt China can do a lot of damage to small miners who can't survive a 6mth drought, but that is what this could turn into before normal consumption resumes. We will just have to keep watching the Baltic index for signs of improvement. (BHP want's FMG's loader but would they pay 8b for it?)