Wolf,
Quite a contradicting article there, if china tries to slow down demand for iron ore (reducing the iron ore price) then they invite other countries to start competing for product i.e. South Korea, India, Japan, Vietnam, and Taiwan (there would be others here too).
So as you can see the iron ore demand is still there especially in india where they are looking to retain their high grade iron ore for their own country (the Indian Government put a tariff on the good stuff but was happy to sell the low grade stuff to china)
India about a week ago released a statement that they wanted to continue operations with Japan ad hinted that South Korea would have to look else where for the iron ore (high grade).
Indian government has also recently Auctioned off blocks of tenements where they believe they have iron ore to an open market, these will take some time as exploration needs to happen 1st.
Back to China, there is no way the Chinese should curb production, they are trying to jawbone the price of iron ore down, another reason the iron ore price hasn't taken off is Chinese government has opened up and started auctioning off their reserve stock piles, these stock piles are now getting depleted.
China is now scrambling to come up with more supply, hence the interest in Simandou, Cameroon and the DRC amongst other African countries, china is going to find doing business with these countries quite expensive is viable at all, then they need to cross the path of reliability.
Brazil, i dont think i need to tell you about the problems going on over there in Brazil other that to say supply is still down and there is no signs of this supply line getting bettter in the short term.
The environmental conditions is a slide of hand, most of the ore that goes there is from low grade local operators from what i have read. not that china cares for its people or the environment.
Any way i hope that covers off, alot of what you were pointing at, oh and 1 last one the 7% growth is still growth and china government hints that they will cap and maintain 6% off the article above.
Personally i believe the slow down in growth for my mind relates to lack of supply from Brazil and this supply (high grade) needs to be made up.
Other ASX listed share that operate in Africa or South America might be worth a look.
i would advise you do extensive reseach here as 2 ASX companies lost their tenements to Chinese consortiums.
I prefer to stick to Aus companies here in Australia unless they are bid and well funded for a court battle, i'm not saying juniors wont be successful, this is just my preferance.
I hope that answers your question.
Rooks
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