CROC,
I found this article very interesting!!!
China diversifying supply
The reports follow news that China will help bankroll a massive expansion of low cost iron ore being undertaken by Brazilian major, Vale.
The new ore supply would rival Australian producers on cost and quality.
Mr Strachan believes China is making sure it has equity in all global suppliers.
"The Chinese are playing the market a bit there, the Chinese are posturing about what they're going to do with other partners," he said.
"China already has massive interest in iron ore projects in West Africa, they're with Rio Tinto in Guinea, they're snooping around another couple of projects."
Mr Brierley said competition among producers was good for China.
"The last thing they (China) need is for the iron ore market to become more concentrated because that just plays into the hands of the majors, BHP, Rio and Vale," he said.
"Competition between them really means, ensures that they're getting a decent price for the iron ore."
But he does not think China is trying to drive a wedge between Australia's relationship with the United States.
"It's important for them to encourage as much supply as they can and Vale has a major new iron ore development, a very high grade resource," Mr Brierley said.
"The Chinese helping Vale with some financing is a way of ensuring they stay relatively strong and continue to supply the iron ore China needs."
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