Schroders: Could this be a repeat of the late 1980's
Schroders: Could this be a repeat of the late 1980's? Andrew Fleming, Deputy Head of Australian Equities at Schroders says the iron-ore market resembles the market of the late 1980's and early 1990's where the Japanese incited a large amount of supply from the major miners in Australia. Having got that, they then put the screws on prices and saw prices decline quite a lot. Then finally once those price changes had taken effect, (they bought) equity in a lot of the mines that were producing to meet their needs. Fleming says the Chinese are so far are following exactly the same script. Will struggling iron ore producers be next in the cross hairs?