The next phase...
by, 13th-July-2009 at 10:09 AM (780 Views)
Forget about Stern Hu, he is just a small potato... this is what will raise the heat. Wait for it.
Keep those dates and timeline in your diary. Meantime, don't expect the iron ore market to be active. Over there, the Chinese steel sector/market will be going through a shake up and shake out, with CISA banging heads to take down every rogue and delinquent traders... by the time they finished, they would be ready for next round of negotiation. And by that time, the spot market would be quite "dead" too - when no one dares to step out of line.
What left will be the "going broke" scenario - the contract negotiation between the biggest supplier vs the biggest consumer... with serious consequences. If there's a dead lock like this year, attrition will be the name of the game; by then, just use your imagination and visualise what it would mean to China, the consumer and Australia the producer.