“The rest of the world is cutting production and that means they don’t need China’s exports, so China’s production in steel is going to slow,” said Glyn Lawcock, head of resources research at UBS AG. “
From my earlier post where i mentioned that we are not safe as china as well is not safe on regards to the credit crisis and it is gonna effect us in some way. The great analysts and commentators on the Australian stock market were merrily saying 6 months earlier , that the credit crisis wont effect china and therefore we will be safe , but its all coming to a head now and as i expected the wear and tear of the credit crisis has reared its ugly head and catching up with china.China is feeling the lessening demand coming from its export markets and therefore going through a bit of a slowdown , thus effecting us
Its very evident with the recent result showing from the Mt gibson iron ore shipments put on hold due to drying up of finance there.
“Customer and iron ore sector analysis indicates a slowdown in demand for iron ore in China due to current economic uncertainty and the tightening of credit facilities,”
Cash prices of iron ore imported by China fell by a record 17 percent to 1,000 yuan ($147) a ton in the week ending Sept. 29 at Beilun port, according to data from Beijing Antaike Information Development Co. Benchmark contract prices were settled this year at $144.66 a ton.