Some shorts can't do research and they are just as incompetent...

Some shorts can't do research and they are just as incompetent as BHP's sales management.

BHP has higher grade IOs than FMG and all they can manage first half of FY was US$55/dmt. FMG got US$56/dmt for thier IOs at the same time.

FMG will not get US$90 for their IO and not all IO are selling at US$90/dmt. Some will get US$100, some will get US$60, just that the BENCHMARK price is US$90.

Steel mills are not using pure US$90 IO all the time, it's not economical to do so, to make profit, they need to use both high and low grade IOs. World Steel prices are recovering to a point Chinese steel mill are making around 600-800 yuan a ton profit ATM. While the price for steel is high and steel mills are making enough profits, they will continue to use HIGH QUALITY IO at a premium price.

That is how supply demand works.

BHP/RIO talked down the IO price because they want to protect their market share. Vales recently said IO price will be US$80+ for the remainder of the year, so what is shorter's argument for that?

Hehehe.... how do you like that.

DYOR.

Frank.