One thing I disagree with the article is China will just restart mines they've closed I don't think they will, they were poor quality to begin with most above $100/t breakeven and the other thing yes vale have 90mt coming onstream but they are supposed to be closing off other high cost production that is costing them money that might be delayed at current prices sure depends on the breakeven price . Rio needs to build a new 50mt mine for $3-5bn sunk costs every 5 years just to maintain the production levels where they are now. I think price could hover in the $50/60 ton range which is still tight for new entrants but good for the big players IMO. The anketell port with baosteel could be interesting though it could be justified in that price range and with labour costs for construction coming right down in WA.
FAS Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
