For anyone wondering iron ore swaps cash settle at the average of the daily index price in the month of settlement - hence the hedge can't be perfect. Should a cargo be sold on a day that the price is below the average then there will still be a shortfall. Conversely if a cargo is sold on a day that is above the average then there is a benefit.
Question I wonder is would there have been any benefit to having shipped lower grade material in a time of low prices that then may have attracted a price discount whilst reserving higher grade material for higher prices in the future?
I haven't seen what premiums for an extra 1%Fe have done over the last little while however I recall that back when IO was falling off its highs in 2011/2012 Fe premiums were very low as low grade material was bid up. The rational was that blast furnaces didn't want to turn-off at the time and wanted to keep running while reducing their steel output and costs. (Chinese steel mills were even purchasing cargos around 40% Fe from India for that reason.) Obviously the opposite is true when prices are high and a mill wants to increase output and so higher grade material fetches a premium.
Does anyone know/ have some thoughts?
Agree some colour on the grade from management on the report would have been helpful.
- Forums
- ASX - By Stock
- FEX
- Ann: Quarterly Activities Report
Ann: Quarterly Activities Report, page-90
-
- There are more pages in this discussion • 61 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FEX (ASX) to my watchlist
(20min delay)
|
|||||
Last
28.0¢ |
Change
0.005(1.82%) |
Mkt cap ! $201.7M |
Open | High | Low | Value | Volume |
27.0¢ | 29.0¢ | 27.0¢ | $653.1K | 2.328M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 276485 | 28.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
28.5¢ | 32247 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 272486 | 0.280 |
5 | 185188 | 0.275 |
7 | 297658 | 0.270 |
2 | 413207 | 0.265 |
4 | 14765 | 0.260 |
Price($) | Vol. | No. |
---|---|---|
0.285 | 32247 | 2 |
0.290 | 309020 | 7 |
0.295 | 216118 | 3 |
0.300 | 265259 | 7 |
0.305 | 77857 | 2 |
Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
Featured News
FEX (ASX) Chart |