Iron ore price, page-32984

Despite the callings of many here I do not believe prices above 250 even briefly are in our interest and sustained prices at 20 are the the best we can hope for without some sort of reaction
Do not underestimate the ability of China to react
I watched them do it in the nickel market
2007 nickel price was over 50000
Aussies were saying no substitute for our nickel and what do the Chinese know etc
Well they managed to dump the laterites straight into steel and the nickel price despite climbing on huge recent demand is about one third of what it was 14 years ago
Oil was going to stay at huge prices because we had reached peak oil Wild figures were being bandied around but it encouraged fracking in US in particular US moved from being world major importer to a net exporter and it has taken a major rally to bring oil back to half of its earlier peak.Worse still the pathway to complete substitution of oil is now believable -inconceiveable 10 years ago
China also have lots of neighbours and near neighbours with good deposits which would open up if they felt 200 prices could be sustained Ukraine India
Australia itself could under the right conditions supply the worlds IO demand Sustained prices might encourage the banksters to finance the expansion of juniors
Yup product substitution and increased supply become real threats at these prices exciting as they are in the short term
That said a 250 divvy has a very nice ring to it