ago - $2, page-47

lol superox... there's nothing left... the bondholders get a shell, I'm sure they're celebrating.

The gap between imported prices and domestic prices has widened yet again. Eg. Since the Jan 2013 peaks, import prices have dropped 30% (in CNY terms) and cince the Aug 2013 peak, import prices have dropped 20%! Meanwhile prices from domestic sources have dropped 9% since Jan 2013, and 6% since Aug 2013. The reaction from steel mills will be the same as last time such divergences occurred (Jun 2013 and Sep 2012), which was to start sourcing supplies from cheaper port stocks.

The damage on AGO should've been evident on Friday afternoon, as I said above. FMG and MGX both slid from their morning highs in line with what was happening with the Chinese markets... AGO was going down the same route, look at the dumps around 2pm, the mm edged the price down, saw demand, and edged it back up towards close. My impression is that real demand is quite strong, so any selloff will be driven back up. Personally, I don't even care about st movements... it's just a distraction from the big picture.