# Dodgy Chinese financial systems



## markrmau (21 June 2005)

Basically saying the chineese have no qualms about reneging on their financial contracts. This is one of the reasons most people don't really see china as an open market economy. (except kowtowing ar@# lickers LOL).

"Speaking through an interpreter Mr Huang said if iron ore prices dropped, iron ore importers could exact revenge by not taking the product as promised."

http://www.smh.com.au/news/Business...ce-hike-revenge/2005/06/21/1119321719095.html

The president of China's largest iron ore importer Sinosteel Corp has warned the unprecedented iron ore price hikes this year could jeopardise the long term future of the Australian industry.

Rio Tinto Ltd and BHP Billiton Ltd secured 71.5 per cent price increases on iron ore production, which Sinosteel president Tianwen Huang said exceeded the expectations of the Chinese steel industry.

He said to some extent the industry could not support such prices.

The increased cost of steel was not only harmful to the end user, but also to the sustainability of the iron ore suppliers, he said.

Speaking through an interpreter Mr Huang said if iron ore prices dropped, iron ore importers could exact revenge by not taking the product as promised.

Sinosteel has been visiting Western Australia over the past week, holding discussions with potential suppliers.

Last week it signed an agreement to establish an iron ore joint venture with junior explorer Midwest Corp.
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It has also held discussions with Fortescue Metals Group Ltd and private outfit Mineralogy Pty Ltd.

Sinosteel has been active in Australia since 1990 when it started producing iron ore from the Channar joint venture, in Western Australia.

It is involved in most facets of the steel making business.


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## tech/a (21 June 2005)

*Re: Dodgy chineese financial systems.*

It makes me rewee rewee madd cookie boy!!

Its not limited to Iron Ore.

The Chinese basically out bid every other competitor to take take all available steel off the export wharf's.
Of the 14 mills offering billets to our importer only 4 honored forward orders.
the other 10 took the extra $200+ a tonne on offer from the chinese and sold all forward orders,from the exporter and consequently drove prices for people like us sky high and caused production problems as we couldnt supply componentry.

Demand--theirs--caused huge price increases.Now the demand which is un sustainable sees the instigators of this demand squealing like stuck pigs because the forward orders they placed at the high prices they caused  can now be serviced buy the industry.
Infact the surplus is being offered well below those prices China offered to secure orders.

Awww cookie boy re rant our pwoduct on our terms not yours!!

Hmm threats seem a strange way to develope supplier loyalty.


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