Chinese iron ore import tax?

From The Australian:

Deutsche Bank says its feedback from the 2014 Asia Steel Forum on China’s iron demand outlook was “pessimistic”.

“A weakening property market and restructuring of the economy are having the effect of significantly lowering steel demand,” the broker says. “A weakening property market could create structural headwinds for shippers of dry bulk.”

…The broker also saw potential for China to impose an import tax on iron ore.

It’s not news that sentiment is poor. The risk of the Chinese imposing an import tax on iron ore must surely keep the majors up at night.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.