An interesting discussion on future Fe supply/demand is found here
In the short term,
* BHP report claiming a Fe support level (of 62% equivalent) between US$80-100/t since 170mt of global production is above US$80/t cost (a rather large 10% of global output)
* Money of Mines mentions that there are projects on the horizon that could cover this 170mt high-cost component, in particular, the Simandou mine complex but those will take time to develop (500+km of rail, port, $10 billion in capex. Production expected to start in 2025 and ramp to 60Mt over 30 months assuming no delays)
However, long before then, BHP claimed,
* Chinese property market to bottom in 2025
* Machinery overtaking housing in Fe demand
* India Fe demand keeps growing rapidly
So the Money of Mines take on this is that this US$80-$100 Fe support zone is valid and we are likely near the bottom for prices for Fe (dipped to US$90 recently and pulled back harder than in Oct 22).
And with that (and many other points [company EV, looming buyback, 5-year reserve forever, etc]), I'm in at $0.315. Good luck!
MGX Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
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