AGO vs AGOO, page-28

Jaguar,
Yes I think I can say what the price of IO will be in 12 months time. $40-50/t. The reason being the extra 160-170mt/a that is coming on line, plus the fact that it is all higher grade than AGO's 57%.
There just isn't the demand growth for IO.
About low port inventories at present. The Chinese are closing all the mills around Bejing towards the end of the month because of some international conference and they want clean air. This has led the mills to increase production in the short term so they have product to sell during the shut down. As we get into September port stocks will rise as the mills are shut down and not buying. This will send the price back down to below $50/t
As more higher grade ore comes onto the market next year, the differential between higher grade and lower grade will become greater, it is simple economics 101.
If there is more than enough IO dumped at the ports next year and not all of it can be sold, which grades will be left without buyers? Is it possible for there to be too much IO at the ports for sale? My opinion definitely YES.