Trump Tariffs hit Chinese steel, page-31

Rio is currently mining 64% iron dirt in Brazil. This dirt has tax advantages that outweigh the tyranny of distance or price advantage that applies to the lower grade WA iron dirt. So FMG will be at a constant price disadvantage for up to 30 months just to get "closer to" 62% iron dirt BUT it is still NOT 62% iron dirt.

Brazilian iron ore producers pay HALF the tax the producers pay in WA. The local producers are also moving to automation and reducing the size of their workforce to try and counter the heavy local taxation.

The trade war between China and the US is already underway. China export trade to the US will be significantly reduced, and so will demand for Chinese steel made from low grade iron dirt.

Q. Why do u think that Trump was campaigning in Duluth, Minn last week?
A. Because he is firing up production of local iron ore to rebuild U.S. infrastructure via local steel production.

That is why the A$ is collapsing (one of many reasons) and the FMG valuation continues to depress. Take a look at a 5 year weekly chart on FMG and observe the bearishness in OBV (massive sell-out of over a billion shares) and how weekly / daily trading volumes in the stock are cratering (dropped in half) AND this is in the face of a collapsing dollar, which should inflate A$ valuations and sales.