Australia’s department of industry, science, energy & resources is mearly a predicitive dog barking after the CCP wagon train has run over Australia for disobediance. DISER, along with most IO analysts, are absolutely clueless as a glance of previous predictions prove.
China will be forced to open all growth faucets to the max and DISER will be right behind them with an authoritive update completely reversing the previous 6 monthly IO forecast as they have just done, yet
again. Anyone who can predict the price of IO accurately would not need to do it for an occupation.
The lower IO prices go, the more high cost mines shut.... mainly in China and Brazil, by their own analysis, creating a shortage followed by a price rally creating a peak, valley followed by a higher peak:
They only see and report preciptous valleys and can't comprehend a higher peak is not only possible but inevitable.
And they can't comment on the massive charge into green steel DRI/EAF and it's implications for the balance between low grade hematite vs high grade magnetite because they either don't know or more likely hasn't happened enough for them to report out of their rear vision mirror.
Likewise, IO analysts can't seem to comprehend the massive energy upheaval that now skews steel production to those rich in green energy and/or cheap gas such as the middle east and away from net energy importers and they use DRI/EAF requiring high grade magnetite.
Any magnetite miner with production costs at or below the 62% benchmark price is going to make a motza and HIO is at the lower end of the production costs whilst being at the highest price point on the spectrum with a wide profit margin inbetween, even at $63 for 62% and that is the absolute bottom for any length of time as it forces too many IO mines out of production and back up goes the price. In fact, $92 may be the new $63 as that is the bottom we recently saw, even after the CCP threw everything at it in its attempt to destroy Australia's economy.
And at that price HIO is a profit printing press and here is Bryan printing the 1/4 of a $billion he and the team obtained for us this week;
