Tuesday, March 29, 2016

China not to blame for the falling Iron Ore prices

You have to remember the iron ore companies went nuts and expanded in a very dramatic way. No matter what China did, those guys in Australia, Brazil, and the United States opened staggering amounts of capacity. Its not as though the Chinese suddenly said lets dump iron ore. China doesn’t have a lot of excess iron ore. The excess iron ore came from Australia and the others. I can not think of anything, maybe rare earths, but there is not much that China has so much excess that they could dump something and drive prices down. They could conceivably manipulate in futures markets but again, I’ve been around a long time, and it is very hard to manipulate those over any long period time. 

I’m sure you could drive the price of cotton down for a day or a week or a month. But to manipulate these prices for a long period of time unless its like Saudi Arabia with oil I don’t see it happening. And that’s because Saudi Arabia has a lot of oil.

Jim Rogers

Warren Buffett

Nouriel Roubini