The information below following this comment goes back to March 13th 2009 i think i wrote a post relating to that information a while ago.

But the same referance to iron ore stock piling in China's harbourgh was in the news today or yesterday.

The fact is that a couple of months ago the chinese govt. ask chinese iron ore producer to diminish production.

The Chinese govt. has a big advantage in this crisis and money is only oneof the reason, they are directing the economy as of one mind considering all factors and diverting their investment towards cpmmodities and garantied supply fo the future at very advantageous conditions with all willing to deal . That's their real new currency benchmark and the most intelligent approach to avoid inflation and sustain growth in the future .

Power is moving to the east.

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Source . : Bloomberg March 19 th

Iron ore price negotiation - Goldman forecast 40% drop in iron ore price

Bloomberg reported that Goldman Sachs JBWere Pty deepened its contract iron ore price forecast to a record 40% decline because of slumping global steel production.

Goldman Sachs analysts led by Mr Malcolm Southwood in a report said that prices for benchmark Australian iron ore may drop to USD 55 a ton in the year starting April 1, down from a record USD 91 this year. It had forecast a 30 percent decline.

Goldman joins Macquarie Group Ltd in cutting price forecasts for iron ore this week. The worst recession since World War II has slashed demand for steel, sending stockpiles soaring at ports in China, the biggest maker of the alloy.

The report said that "The major contract suppliers of iron ore will eventually be forced to concede bigger than previously expected price cuts. Negotiations could be protracted and acrimonious."

Goldman cuts its earnings per share forecast for Rio Tinto Group by 21 percent in 2009 and 30 percent in 2010. BHP Billiton Ltd.’s EPS forecasts were also reduced 3 percent this year and 15 percent in 2010, the report said.