Value 1 - the railway depositValue 2 - to keep the Chinese...

Value 1 - the railway deposit
Value 2 - to keep the Chinese out

IMO BHP would value No.2 highly over the iron ore deposit,
so we should be at least $2.60 IMO.

On the other hand the shortsighted management failed to see a recovery.

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBOM45664820091022

Asia Iron Ore-Prices inch up on moderate Chinese demand
Thu Oct 22, 2009 6:36am EDT

* Iron ore at $93-$95/tonne C&F up from last week

* Some Indian exporters hold stocks eyeing higher prices

* Congestion in east India ports keeps freight firm

By Ruchira Singh

MUMBAI, Oct 22 (Reuters) - Iron ore prices in Asia inched up on moderate Chinese purchases, while some Indian exporters held back from deals betting on higher prices, traders and exporters said on Thursday.

"Demand is stable," said a dealer in a large global trading company in New Delhi. "But a lot of sellers are still not sure where the market is going."

The dealer said some Indian exporters were hoping the rupee's recent appreciation against the dollar would reverse, giving more value to their earnings in the U.S. currency. On Thursday, the rupee INR=IN weakened against the dollar after a 13-month high last week.

China-based consultant Mysteel quoted the benchmark ores with 63.5 percent iron at $93-$95 a tonne C&F on Thursday, higher than last week's $90-$92.5.

A dealer in a large east India mine said he had last sold a cargo at $93 on Friday.

"Today I am targeting $94.5 C&F. I think I can get it as freight rates are up," the dealer in the east India mine said.

Freight charges from India's eastern ports of Haldia and Paradip remained firm this week at $16-$17 a tonne, owing to traffic congestions that saw vessels waiting for 8-10 days to load cargoes, double of the normal waiting time, traders said.

"This waiting period's cost is built into the freight cost," the dealer in the trading company in New Delhi said.

The Baltic Exchange's main sea freight index .BADI which tracks rates to ship dry cargo including iron ore, stayed at over a two-month high on Wednesday. [ID:nLL206251]