Originally Posted by
plainmaker
The truth is China NEEDS the ore
They are supplimenting the reduction in iron ore with an large increase in a scrap. They are taking all the addtional scap iron from the ship breakers running at absolute max capacity, theres a pretty large backlog of ships waiting to be scrapped. This is of course only a short term option and only covers a small percentage of the ore shipped from australia. The other rumor on the finance side is saying straight up the chinese economy cant afford to pay for all the incoming resources and is a bit of a house of cards atm.