The one person I would never ask is a vested interest. But, given media has no brain of its own these days, that’s what the AFR did:
To solve the mystery of strong iron ore prices, Detective Chanticleer turned to Huw McKay, BHP’s chief economist, who is based in Singapore.
His answer was deceptively simple: iron ore prices are high because Chinese steel mills have been producing at a record annualised rate of about 1.08 billion tonnes, despite the weakness in the residential property sector and despite the fact that steel mills are running at losses.
