Asia-Pacific

Jan 15, 2013

The $17b iron ore slump that lined Chinese pockets

The slump in iron ore prices boosted the Chinese economy -- but robbed Australian exporters like BHP and Rio Tinto of significant revenue in 2012. But the tables are turning.

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

What’s $US17 billion or so between friends like the Chinese steel industry and iron ore suppliers such as Australia? That’s the size of the multi-billion dollar income boost the Chinese industry got from the iron ore price slump in 2012 — a wealth transfer which in turn battered the Australian federal budget, confidence in this country and the share prices of leading mining companies here and around the world in the closing months of the year.

1 comments

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One thought on “The $17b iron ore slump that lined Chinese pockets

  1. Coaltopia

    Is it really “wealth transfer” when global prices are lower?

    Is the problem simply that the MRRT isn’t good enough?

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