Rio Tinto, BHP, and FMG of Kangaroo Country, along with Vale of Brazil, were the international Four Iron Ore Giants. Over the past two years, Rabbit Country had developed rapidly, with steel production climbing steadily and demand for iron ore rising along with it.
As major monopolies controlling global iron ore resources, the Four Iron Ore Giants held almost complete control over pricing. They expanded production every year, yet iron ore prices remained stubbornly high. Fleecing Rabbit Country had never felt so good.
Recently, however, news that Baowu Steel Group would cut its total iron ore purchases by 50% next month had caused a stir among the Four Iron Ore Giants.
As the largest steel group in the country and the second largest in the world, Baowu Steel Group accounted for nearly 10% of Rabbit Country's total iron ore purchases. The impact of suddenly halving that amount was easy to imagine!
For them, this was bad news of no small consequence, so they immediately convened meetings to discuss it.
"How is that possible? Without raw materials, are they planning to shut down huge numbers of their factories?"
"According to sources within the company, the environmental authorities have ordered production cuts because of the smog problem in their country!"
"Like hell I believe that! Who cuts production by half in one go? Do they still want to stay in business?"
"Yes, I think it's a smokescreen too! Could they have found another supplier?"
"We know the international mines better than anyone. There definitely haven't been any major changes, so it can only be their domestic mines!"
"That's even less likely! Their domestic ore is expensive to extract and low-grade to boot. Our low-price dumping drove a whole bunch of those mines out of business years ago! If they actually buy domestic