I think the Chinese are playing the game beautifully. They are turning the tap down to maximise price leverage and renegotiate contracts in April next year. BRM is very well positioned as it is poised to launch at a time when it is very likely global markets will start to recover and Chinese demand substantially increase (Q1 2010). If Chinese demands falls off for three to five years (as the market would appear to believe) then the word will likely be in a very very deep depression.. and for now at least, I think this scenario has been averted. BRM's start time is now working in its favour.. Unfortunately the market seems to believe that iron ore is currently a liability rather than an asset.
BRM Price at posting:
54.5¢ Sentiment: Buy Disclosure: Held
