China’s economic woes are slowing demand for natural resources, and mining giants, like BHP Billiton, are slowing production as a result. From the Sydney Morning Herald:
“There will be less ships than before,” Frank Zhang, a representative of Wilhelmsen Ship Service in Port Hedland, told the Herald. “There are [already] less ships than the previous months. Also, a lot of ships have to wait for a letter of credit before they can be loaded.”
Brazil’s Vale, Rio Tinto and Fortescue Metals have each slashed production forecasts by 10 per cent this month amid lower demand for iron ore in China, but BHP has maintained its production plans.
BHP’s shipments in October fell to the lowest level since February and the Herald understands the miner expects its November numbers will also be weak – but for operational reasons rather than lack of demand.
