Well, so much for the super commodity cycle. It looks like our faith in China is unfounded.
Jitters as China hit by metals fatigue
"AUSTRALIA'S best shield from global economic turmoil - the high value of its commodity exports - is under threat with news that China has told suppliers to slow iron ore shipments and predictions that iron ore and coal prices could fall by 20 per cent next year.
Australia's fifth-largest iron ore exporter, Mount Gibson Iron, shocked the sharemarket yesterday by warning that its Chinese customers were asking it to delay shipments as demand slowed due to economic uncertainty and the tightening of credit facilities.
This announcement came hours before Kevin Rudd said he had received reassurance from the Chinese Premier, Wen Jiabao, on Monday that China's growth forecasts remained strong."
It looks like our commodity bull run is coming to an end, will be interesting to see how this unfolds over the next 12 months. It seems like we are heavily reliant on China for our current good fortune and if China wobbles we are royally stuffed. What do others think, do you think this is a significant event?
I suppose with the fall of the AUD maybe our tourist industry will get a boost, but than again maybe there are less cashed up international travelers now.