The Iron Ore bears conveniently forget what would happen to the supply side equation if I/O prices fell below $100/t for an extended period of time. There is a lot of supply (probably a third) that requires prices above $110/t.
The share price of the Majors (RI0, BHP and FMG) will drop significantly if the price crash did come, but it would all be temporary, as adjustments in I/O supply would correct the balance and send the price back above $100. FMG have been publicly saying their break even price is somewhere around $70/t.
This is why it is so important to be at the bottom end of the price curve.
$6 on the cards , page-13
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$18.44 |
Change
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Mkt cap ! $56.77B | |||
| Open | High | Low | Value | Volume |
| $18.38 | $18.54 | $18.33 | $196.7M | 10.67M |
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| No. | Vol. | Price($) |
|---|---|---|
| 4 | 1832 | $18.42 |
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| Price($) | Vol. | No. |
|---|---|---|
| $18.45 | 1100 | 3 |
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