Doesn't it make you wonder why politicians have unrealistic long term forecast for iron ore prices when 60% of the boom in China was created from fixed asset spending.(infrastructure)
The market is very fickle and quite often only thinks 12 months ahead but I would expect better judgement from leader. I predicted years ago that the market would be flooded and when the boom ended the iron ore price would crash. Only low cost producers would survive. I'm no brain surgeon.
BHP and RIO are increasing production to supplement the loss of income, not to drop prices.
