more good news thanks to china miscalculation

The Chinese really brought this on upon themselves by playing the destocking stunt last year to induce a IO price crash spooking the daylight out of the global IO industry and the financial world resulting in hundereds of millions of tons mothballed and canned that otherwise would come on stream in 2014-16 which would help in their strategy of diverification of supply.

The Chinese state media pumped out daily stories of more price crashes because of massive over-supply. All the while TAKING THE BAIT.

First RIO, now BHP are going slow on expansion to tighten the screw further.

http://www.theaustralian.com.au/business/mining-energy/iron-shortage-looms-with-rio-tipped-to-delay-plans/story-e6frg9df-1226678082982

http://www.platts.com/latest-news/metals/singapore/bhp-billiton-cautious-on-china-iron-ore-demand-26198465

BHP Billiton cautious on China iron ore demand, rules out large-scale expansion

Singapore (Platts)--20Aug2013/700 am EDT/1100 GMT

BHP Billiton Tuesday delivered a cautious outlook on Chinese demand for iron ore and said any future capacity expansion in Western Australia would be incremental rather than large-scale.

The Anglo-Australian company reported a 29.5% fall in attributable profit for fiscal 2012-2013, July to June, to $10.87 billion on lower commodity prices, and slower economic growth in China over January-June.

The miner said supply of iron ore and metallurgical coal in fiscal 2012-2013 had kept pace with strong steel production in Asia, which resulted in lower prices for raw materials used in steelmaking. Its earnings before interest and tax for iron ore were $14.2 billion, down 22% from 2011-2012.

Looking ahead, the company said steel demand growth in Asia would "moderate" as the Chinese economy rebalances. Increased iron ore supply will put downward pressure on prices in the short term, but lack of investment in new projects would in time see a balance in supply and demand, it added.