fmg unfazed

Twiggy is continuing to expand . Producers have an idea what the I/O price is going to be and they are producing under the price allowing for a profit margin. Can buyers try to push the price down and course mines to close? Can mills coupe with closure’s ? In other words to a point producers and mills have to work together??
Some new mines have been put on hold.


http://news.smh.com.au/breaking-news-business/fortescue-unfazed-by-iron-ore-price-falls-20140328-35o48.html

Fortescue unfazed by iron ore price falls
Date March 28, 2014
Kim Christian

Andrew Forrest's Fortescue Metals Group will continue exploring for iron ore in the Pilbara despite lower growth forecasts for China and weaker iron ore prices.
As the company opened the final stage of a $US9.2 billion expansion of its Pilbara operations on Friday, Mr Forrest said he was not worried by falls in iron ore prices.
"Despite the market going up or down in iron ore prices that's not really my concern," the Fortescue chairman told reporters during a tour of the newly commissioned Kings mine.
"My concern is keeping those strong operating margins by becoming more and more competitive - and that's happening."
Some analysts have cut growth forecasts for China, and predicted iron ore prices will sink to around $US80 to $US90 per tonne over the next few years.
But Mr Forrest said analysts had forecast the Kings mine would not be built until 2018.
"Look at how wrong that assessment was," he said.
Chief executive Nev Power said Fortescue was continually exploring in the Pilbara to extend the life of the company's assets, but he would not say whether it aimed to exceed its current 155 million tonne per annum target over the next few years.
Production guidance for the current year remains unchanged at 127 million tonnes.
Fortescue expects iron ore to trade in the range of $US110 to $130 per tonne for the remainder of the year.
"There'll always be short term volatility driven by stocking and re-stocking cycles but the iron ore price has already returned to around $112-113 a tonne," Mr Power said.
At least another 100 million tonnes of capacity could be generated at Port Hedland, he added.
Mr Power also said the market would be able to absorb the extra output coming from Gina Rinehart's Roy Hill project.