Given Chinese officials' penchant for painting rosy economic pictures, it is something of a big deal when a state-backed institution such as the China Iron and Steel Association makes such a bearish call.
Glasenberg’s determination to continue with the offer as originally planned comes amid growing signs that Xstrata is more confident of its position on a stand-alone basis.
The restart of iron ore mining in Karnataka amid multi-year low prices for the commodity is not seen to impact the global seaborne trade in the near-term.
New doubts have emerged over world number one miner BHP Billiton's (LON/ASX/NYSE:BHP) $20 billion outer-harbour project at Port Hedland, Australia, with big names such as JPMorgan and Deutsche Bank saying they expect it to be axed.