Dalian iron ore rebounds; Tangshan move stokes demand worries

China Mining United Fund plans to establish a collaborative China/Africa equity fund to pursue minority stakes in gold, iron-ore and metal companies in Africa and other parts of the world, and which could raise $2 billion in investment capital.

Recent discoveries of rare earth minerals at the bottom of the Pacific Ocean could break China's existing stranglehold on supply of the key raw materials.

Simply put, China has built too much, too quickly.

A build-up in steel inventories and a steep drop-off in demand as China's building boom begins to look more and more unsustainable send iron ore down 3.4% in just the last week and more than 25% below the $174 a tonne struck this time last year.

Chinese media sources have confirmed rumours of government stockpiling of rare earths which have been in circulation since earlier this month with China’s leading English-language daily reporting that the central government has budgeted around US$949 million for the undertaking.

Citic Pacific Mining executive chairman Dongyi Hua says "soaring demand for Australian food, particularly beef, among China's 100 million wealthy people could buffer Australia's economy from the effects of an end to the mining boom" particularly given the risk that iron ore prices could fall further.

Zijin Mining Group (HK:2899), China’s largest gold producer, announced on Friday that its bid for Australia’s Norton Gold Fields Limited (ASX:NGF) had successfully obtained approval from Australian regulators.

Swiss commodity supplier Glencore International obtained approval from the Canadian federal government on Sunday for its application to buy up Canadian agribusiness titan Viterra Inc., bringing the $6.1 billion deal that much closer to completion.

Dee Woo writes in the Business Insider that the Chinese government no longer has any policy options left, and it must start deleveraging.