bhp tips iron ore slide, page-22

The volatility in Iron Ore pricing can be attributed to the Chinese manipulation.
The combination of stockpiling and then cutting off demand at critical times leading up to the next
quarterly pricing contracts may kid the market for a short time but this manipulation will become
evident as China uses increasing amounts of Iron Ore year after year.

Four or five years ago while IO contract prices were struck annually, 4 RIO executives were
jailed in China for gathering market intelligence regarding forecasted Chinese IO use.
While the Chinese are crook on outsiders who try to manipulate prices, they are very
willing and able to manipulate prices when it suits them. An example of this is the recent
WTO ruling against China for manipulating supply/price of Rare Earths.

Australia and Brazil should get together and form an OPEC-like cartel so that production
levels and consequently pricing can be determined by the IO producers. If its legal for OPEC
with oil then why not with IO?
Cheers
Moorookamick