This will send many new developments to the wall and hurt big time the existing ones who are geared up for current contract prices. IE MMX. Please MMX ditch the expenditure on Rocklea till better days.
No recovery is likely in the short term.
''Chinese steel mills and big global miners are in annual talks to set term iron ore prices. Chinese steelmakers say the miners are dragging their feet, hoping for demand to recover.
"I think, first of all, we can only go to discuss precise prices on the basis of the 2007 price level," Shougang Group Chairman Zhu Jimin told reporters.
That implies a 50% cut, since last year prices from top ore suppliers BHP Billiton, Rio Tinto and Vale almost doubled''
