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@dirkjeremy The following article from investment bank Liberum...

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Clark888

3,408 Posts.

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05/02/19

12:20

Post #: 37334081
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Originally posted by dirkjeremy ↑

Originally posted by Clark888

Cheers

These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
I believe in the short to medium term the iron ore price will fall back to the mid $60s. However in the medium to longer term we will without doubt see the next bull cycle. We have had an imbalance (oversupply) for almost 7 years now and at present the demand and supply equation is probably near equilibrium. Hence a supply deficit cycle is due in the next year or two given so much potential supply (new developments) have been snuffed out since around late 2012. The big boys will soon make China pay up for the cheap ore she enjoyed over the last 6 years. There are no free lunches. Like Woolies and Coles selling bananas at 50c a kilo until Con the Fruiterer closes up shop then bananas back at $1.50

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@dirkjeremy

The following article from investment bank Liberum supports your view:

Me, I'll wait a coupla days to see how Vale’s plans to halt production at 10 of its operations works out, particularly for the global pellet market.

Cheers

These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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