Basically saying the chineese have no qualms about reneging on their financial contracts. This is one of the reasons most people don't really see china as an open market economy. (except kowtowing ar@# lickers LOL).
"Speaking through an interpreter Mr Huang said if iron ore prices dropped, iron ore importers could exact revenge by not taking the product as promised."
The president of China's largest iron ore importer Sinosteel Corp has warned the unprecedented iron ore price hikes this year could jeopardise the long term future of the Australian industry.
Rio Tinto Ltd and BHP Billiton Ltd secured 71.5 per cent price increases on iron ore production, which Sinosteel president Tianwen Huang said exceeded the expectations of the Chinese steel industry.
He said to some extent the industry could not support such prices.
The increased cost of steel was not only harmful to the end user, but also to the sustainability of the iron ore suppliers, he said.
Speaking through an interpreter Mr Huang said if iron ore prices dropped, iron ore importers could exact revenge by not taking the product as promised.
Sinosteel has been visiting Western Australia over the past week, holding discussions with potential suppliers.
Last week it signed an agreement to establish an iron ore joint venture with junior explorer Midwest Corp.
It has also held discussions with Fortescue Metals Group Ltd and private outfit Mineralogy Pty Ltd.
Sinosteel has been active in Australia since 1990 when it started producing iron ore from the Channar joint venture, in Western Australia.
It is involved in most facets of the steel making business.