Sspread between 3 IO grades over the last 2 years
Two years ago the price gap was approximately 25% of what it is now. After 18 months of rapid increase it has steadied and currently it is practically constant. the IO ore price is now a major concern for low quality IO producers. Q1 2018 was a period of hope, Q2 will be a period of test for marginal producers. The price of coke or coking coal is a major ingredient determining the profitability of steel making and a decrease would be beneficial to profitability of BOFs using low quality IO.
Environmental concerns have not changed and the Chinese government is determined to reduce pollution. This is definitely bad for low quality IO producers.
AGO Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
