Another concerning read:...

Another concerning read:

http://www.theaustralian.com.au/bus...129549126?nk=448cde5670fe68a03ea7733d48d42009

BHP and RIO's strategy of pushing more and more iron ore onto the market is essentially profitless activity, as increased production is offset by a lower ore price. The strategy is aimed at forcing higher cost producers out of the market. They are hoping for a payback somewhere down the road. But this strategy may just backfire on them, just as BHP's purchase of Magma Copper and RIO's purchase of Alcan were ill-conceived (to choose but two examples of management bungles that cost their shareholders dearly). The Chinese could go on a spending spree buying quality iron ore assets (like BC Iron and others, even FMG) at distressed prices (cash backing even) and be the 4th major global force in iron ore.