Some years ago I described what was coming in the iron ore market as “blood flowing through the gullies of the Pilbara”. We’re still a long way from that but the first trickles are beginning to run. The Twiggy Forrest’s outburst two days ago calling for a iron ore cartel has generated fantastic quote after quote from industry insiders. It began thus:
At a business dinner in Shanghai on Tuesday night, Mr Forrest, founder of the fourth biggest iron ore exporter, Fortescue Metals Group, said he was “absolutely happy to cap my production right now” at 180 million tonnes.
He said the other major players, Rio Tinto, BHP Billiton and Brazil’s Vale should also cap their production “and we’ll find the iron ore price goes straight back up to US$70, US$80, US$90.”