BHP Billiton CEO said that if a moderation in China's industrial growth were to pressure commodity prices, iron ore would hold at around USD 120 per tonne to USD 130 per tonne.
Mr Marius Kloppers CEO of BHP Billiton said “That's the marginal cost of supply and at that level it's very buffered.”
He said “Because demand is outstripping supply in the short term, iron ore prices will be prone to volatility. The market shouldn't underestimate the ability of Chinese firms to respond to high prices by boosting domestic output. They will kick in and quite quickly push it down again.”
China's imports are falling on a combination of high prices and government measures aimed at damping what many see to be an overheated economy.