Iron Awe - how and why HIO could 100X, page-9

This is a must read article (and comments section) on iron ore price outlook -"https://www.livewiremarkets.com/wires/where-s-iron-ore-headed-from-here

Few excerpts are pasted below:

"China probably needs iron ore prices at or above $100 USD/tonne to make the great bulk of their marginal grade industry sustainable. Otherwise, they are simply paying away in a massive subsidy to keep the industry alive, with little hope of tempering Australian dominance".

"Domestic China-sourced iron ore needs those higher prices to be sustainable, or the local iron ore producers are subsidizing the downstream steel industry. Since the larger steel mills in China remained profitable right through this period of higher iron ore prices, that indicates the robust demand within China. Of course, the CCP is trying to get ahead of rising producer prices by imposing quotas to restrict steel exports from China, and thereby relieve some domestic pressure. However, this simply takes steel away from a tight global market and leads to higher prices in Europe, Japan, India, South Korea and the USA. That keeps global steel strong at this time. Ultimately, that feeds back into demand for tradeable iron ore in the seaborne market. In the short run, we will likely see this soft patch for iron ore until inventories are drawn down, and the Winter Olympics in China are done. However, in the new year, the global shipyards will start laying down keels for a large number of new orders for container ships and other vessels. Once that steel demand hits I think iron ore will remain firm in the $100 to $150/tonne USD range."