Well that was a wild week just gone. Here are my observations.1....

Well that was a wild week just gone. Here are my observations.
1. IO price has adjusted from ridiculous to healthy high.
2. Not a surprise nor a big deal for a thick margin premium business like Grange. Refer others posts on profitability, quality and margin.
3. Global government announced stimulus spending requires steel therefore IO in large volumes for years. Theres only so long the mills and buyers can hold their breath (unless they have an economic deathwish).
4. Increased inflationary movement and competition for the goverment money is both an upward price pressure and incentive to not hold breath too long.
5. Emissions and green targets may be political excuse for an intentional play to crash the IO price. Stock up then crash the vendors sales. Like dunny paper during Covid. Even if that is not correct, mature long term investors will look through it to the fundamentals - see 1 to 4 above.
5. Grange fared well in the past week, reflecting the premium IO quality and price it enjoys, plus having strong Chinese relations places it at the front of the supplier queue.
6. Well done to the strong shareholding group for such calm resilience in the past week.
7. IO futures rose 2.5% after ASX close Friday so next week may see a turnaround.