No surprise about iron ore slowdown
Resource analysts say they’re not surprised Chinese steel makers have asked for slowdowns in iron ore deliveries.
Several manufacturers have asked Mount Gibson Iron, Australia’s fourth largest ore producer, to delay shipments next year, as the industry slows down in the face of the global financial uncertainty.
Resource analyst Mark Nuitta says, while Mount Gibson is under no obligation to comply with the requests, the fact they’ve been made should serve as a warning the resources sector.
“I don’t think it’s the end of the world tomorrow, but I do think we’ll find things will slow down,” he says.
“The massive profits that companies have been pulling in will probably drop off.
“We’ve also seen a big decrease in the Australian dollar against other currencies, which is good for exporters but obviously if they are exporting less at lower prices, it all evens out in the long run.”