Hi matt747 Sorry just to clarify, are you suggesting the spot...

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donedeal

3,106 Posts.

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25/12/15

10:49

Post #: 16685630
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Originally posted by Matt747 ↑

Hi Pikapika, I made an observation of the IO daily spot price graph from early November (roughly when Cameroon took over the controls in driving the mine equity / funding process).

You can use the following link and plug in whatever timeframes.

https://www.quandl.com/data/WSJ/FE_TJN-Iron-Ore-62-Fe-CFR-China

I think the IO spot price behaviour may possibly have some relationship with Mbalam-Nabeba given China's past practice in using destocking to induce extreme price volatility as a negotiation and intimidation tool.

Whether in this instance it was more to do with deterring or discouraging an 1th hour "unfriendly" re-emergence of the Friendly Countries, we can only tell with hindsight.

After dropping rapidly to a reaching a gut wrenching $37/T, the spot price has since recovered above $40/T over the last 8 sessions. Not a big turnaround by any means but the significance may be in the direction.

Perhaps the Chinese are now quite comfortable that they "will" secure their equity stake in Mbalam-Nabeba beyond doubt. If so, the Cameroon government may have already made advanced progress towards an outcome.

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Hi matt747

Sorry just to clarify, are you suggesting the spot iron ore price has dropped world wide only because the Chinese want a significant stake in SDLs projects on the cheap?

You mention the iron price drop from November, what about the months and years of dropping price before then?

cheers
donedeal

SDL Price at posting: 1.2¢ Sentiment: None Disclosure: Not Held
5 Upvote

0 Great analysis

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