China’s murder of the Pilbara begins

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Back in the day, the iron ore trade was governed by annual contract negotiations between Australian miners and a collection of Chinese steel mills under the aegis of CISA.

These negotiations would set the price for contract iron ore for the next year.

This fraught structure was broken down in the post-GFC environment when BHP’s Marius Kloppers refused to do anything other than sell his scarce iron ore on spot markets.

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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.