I have a question for you guys who believe that the futures market is based on demand and supply.
Are you telling me that if production of ore doubles over the next year, and doubles again the following year, then the price of ore may drop to $10, but the world will use it all up anyway and therefore the production of steel and other by products will quadruple? It will do this because the price is low?
Conversely if price was $200, the world would stop producing steel?
You guys live in fairy land.
If there is such an oversupply as people say, where is it stored? Who is hoarding it?
As Twiggy pointed out and every body over looked in this argument, all iron supplied has been consumed, he was complaining about the constant jaw boning of the big producers that affects the futures market.
The futures market is nothing but a whore house for speculators. In all commodities. What these people need is volatility to make real money, and they do so with flourish. It is not the real world, but the real world is held hostage to it.
Pear
FMG Price at posting:
$1.79 Sentiment: Hold Disclosure: Held
(20min delay)