f13.net

http://www.theoildrum.com/node/4162

It's all about China, but beware The Others.

Japan is impressive for its size.

I'd say China has well and truly cemented it's place as #1.

Where does it all go?!?  Are they building an elevator straight down to America?

There was a program about the buildup to the Beijing Olympics recently and someone threw out the statistic that something like 40% of the world's steel is currently going to China for the Beijing makeover.

It's not Beijing's makeover. It's China's boom in general. Ten years ago, most of their cities didn't have skyscraper CBDs and bicycles filled the roads. Now their cities are metropolises full of middle class drivers. We're talking about a country of billions, where there are hundreds of cities we've never heard of, each with millions of people (see recent earthquake).

They import raw materials, not finished products, and much of it goes to internal needs now, where before it was mostly to make exports. Their industrial and urban expansion is increasing exponentially.

As a result, the mining states in Australia (mainly Western Australia) have exploded with boom fever. It's insane over there - house prices doubling, freshly trained workers paid $90,000 to operate drills. We are feeding China iron ore as fast as we can load boats. China has even been trying to buy into mining rights and mining companies to stop us price gouging.

It's insulating us from the US crisis. America has interest rates down low to spark investment, we've got interest rates up high (nearly 10%) to try and stop our economy overheating. In the past we've always followed the US up or down.

What he said. The difference between big cities like Beijing 10 years ago and today is so massive its almost hard to believe and they have plenty of new 'cities' that are technically towns with populations in the millions. Coming from the UK most of our cities are smaller than some Chinese towns.

Star of the insanity: Fortescue Metals, formerly a shitty little shelf company.

They bought the mining rights to red desert that contains 3 billion tonnes of iron ore, possibly 20 billion tonnes. The land area is 40,000km/2 (equal to Texas). They built a port and a 260km railroad with the world's heaviest trains, and signed deals with Chinese steel mills.

They're on the stock market. The founder Andrew 'Twiggy' Forrest was worth $400m in 2006. He is now worth $10 billion.

AND ONLY THEN DID THEY SHIP THEIR FIRST BOAT OF IRON ORE.

Watch the PR video on their homepage:
http://www.fmgl.com.au

Concrete and steel construction in China:

World's longest sea bridge 2007: 22 miles (35km) (http://www.dailymail.co.uk/news/article-464471/China-opens-longest-sea-bridge-world.html)
World's longest sea bridge 2008: 22.3 miles(36km) (http://news.xinhuanet.com/english/2008-05/01/content_8088321.htm)
South China Mall - biggest mall in world - 7 million square feet (http://www.thenational.ae/article/20080612/REVIEW/206990272/1042) (total failure, only has six shops open)

Well, once they have a bigger Death Star than the USA, I will move.

China has the huge three gorges project which is using insane amounts of material and as part of that they have created a number of cities the size of chicago within the last few years just for the displaced people. That does not include the cities that are being created and or hugely upgraded across their nation. China is in a huge boom now and a lot of mining areas that were previously non viable are coming back to life. The iron range of Minnesota is starting to go fully active again and most of their big mines have been closed for years due to lack of profitability but now with iron and steel prices so crazy they are ramping up to go back into full swing in the next couple years.

That sea bridge only cost 1.5B USD?

Cheap labor I suppose. Ahem, I meant slave.

Are those figures absolutely concrete?

It's like the food thig: I hike/mountaineer a lot and the areas under cultivation here (Scotland) extend across virtually everything practical now.

Set in stone.

All aggregate data shows it, Limey.

Nice double play.  You have render (http://en.wikipedia.org/wiki/Cement_render)ed me speechless.

Off-topic- but why is EVERYTHING on the western hemisphere on the exact opposute side of the globe?

It was quite the set up.

I hate you people.

This thread really sets the bar low, I hate to reinforce it. But it fits the form, I guess. Maybe I just have a sandy vag about it.

Don't be an ass.  Fault lies with those who can't see the humor in word play. ;D

(Think phonetically.  I wouldn't normally call Schild that without being mad.)

This thread is in poor form.

Definitely need to find a cure for it.

Maybe you should just let the punsters pour out their bad habits here.  If you give them attention you'll just reinforce their behavior.

Back on topic-ish.


June 23: (http://www.bloomberg.com/apps/news?pid=20601087&sid=aGFTMxr5b2p8&refer=home) "Baosteel Group Corp. , China's largest steelmaker, on June 23 agreed to pay Rio Tinto as much as 97 percent more for annual contract iron ore as demand outpaced global supply."

June 24: (http://www.marketwatch.com/news/story/japanese-steelmakers-accept-doubling-iron-ore/story.aspx?guid=%7BC4521445-7E64-4BF7-BA6F-CB57CA1AC1DE%7D&dist=msr_1) "Japan steel firms agree to doubling of iron-ore price"