Why?
1. FEX traded in this range when the IO price was 220 USD/T
2. IO price has halved.
3. FEX is a one mineral/one mine pure IO play, it’s fortunes, hedge or no hedge, are tied to the commodity price.
4. IO price has collapsed, not due to oversupply, but a demand shock on the back of Chinese policy shifts - both environmental & to take the air out of a debt laden property development bubble.
5. The kicker is, the small supply gap that may present as higher cost miners fall off the perch, will be filled by Vale increased output.
China is deleveraging, its appetite for ore will never be greater than what it was in the last year or so.
It’s a downward slide from here.
FEX Valuation, page-517
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Last
37.0¢ |
Change
0.010(2.78%) |
Mkt cap ! $257.0M | |||
| Open | High | Low | Value | Volume |
| 36.5¢ | 37.8¢ | 36.0¢ | $952.0K | 2.582M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 74237 | 37.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 37.5¢ | 336700 | 3 |
View Market Depth
| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| FEX (ASX) Chart |