Let's not forget that the steel mills in China are all state controlled. In my view they are taking advantage of the current financial situation and telling their entities to stockpile the ore so they have more bargaining power at the table for the 2009 contracted prices. They may only have a small window to work in but they will try and "cash" in on this oppurtunity. The growth story in China is still happening at between 7 and 9 percent for 2009. When the market settles down towards the end of this year their bargaining power wont be as influential and all the big boys will be looking for an increase.
MMX Price at posting:
75.0¢ Sentiment: LT Buy Disclosure: Held
