'A third factor is the shipping cost. The benchmark price is...

'A third factor is the shipping cost. The benchmark price is based on deliver to a Chinese port, whereby the seller takes care of the transportation costs. Fortunately the shipping cost from West Australia to China has come down a bit to just $7.6/t. If I assume an $8/t shipping cost is being deducted from the revenue'

http://seekingalpha.com/article/232...omies-of-scale-compensate-for-the-lower-grade

Im rarley wrong but conceeded because i couldnt find the evidence. Thanks for the link Ozebloke