Hi All
The Big 4 are ramping up production, aiming to get rid of the high cost miners and eventually tighten control of the market.
It is reported that the steelmakers in China, S Korea & Japan (I am sure India also) are watching closely on the development, surely these countries are very concerned about the iron ore price being controlled by these Big 4 miners in the future. China have been complaining about the high price they have to pay to the Big 4 and said they want more say on the iron ore price.
In my opinion, the Big 4 are actually doing SDL a favour because their tactic may push these Asian countries, may be the Western countries too, to fast track owning their own mine(s) in order to secure their future needs. What do you think?
Cheers.
Pikapika
My Post #: 13936605
..The developments are being closely watched by steelmakers in China, South Korea and Japan, the world's top three importers of iron ore, the key ingredient in making steel. Should the biggest players, which account for more than 60% of all seaborne trade of the mineral, tighten their control of the market, they could exert greater pressure during price negotiations...
BHP, Rio Tinto, Fortescue to tighten grip on iron ore sector
....This is part of the reason the big miners have been ramping up production even as iron ore prices have been falling - they want marginal, high cost players out of the industry, so they can tighten their grip further on the sector.....
http://www.copyright link/p/busines...rtescue_sector_tighten_jxSiRZSLKLLF6BMjRbxKkN
.
