Iron Ore Price, page-1174

Crazy

Refer to last post from "interesting"
& the bit I highlighted

I have been harping on adnauseam that the big 2's strategy was flawed and it would reduce their margins significantly as well as destroying shareholder wealth, needlessly, economics 101 is being ignored to gain market share at any cost

There are more and more calls now that BHP/RIO are acting in concert and harming Australia and questioning their strategy and the farm being caused to the Nation as a whole (ignore FMG's woes)

We are in fact subsidising Chinese mills and they are taking advantage of the oversupply that continues unabated, who can blame them, they were handed this prize

If BHP/RIO/FMG became more attentive to their margins rather than munting a fight to the bottom, at any cost, all players would win & China would pay a fair price, I am not even coming close to suggesting the ridiculous prices like $150.0mt that made every miner salivate and spend big on capex to increase output, only to find their price predictions were way out due to slowing demand from China.

A return to an IOP of around $80.0mt is a fair price for all players and go a long way to reducing our deficit and meeting the staggering $40.0m a day interst bill the country is now obliged to pay, mostly to overseas lenders.

If our big 3 acted to limit supply to equal demand, Vale would follow suit as they are suffering the most financially out of the big 3, refer previous post that there margins are at a 20 year low, credit rating downgraded and huge debt pile, with their Bank recommending divestment of mines

How the shareholders are putting up with this is beyond me, like the article stated "sheer arrogance" and inability to admit they misjudged the rapid fall in price, 27.00% now this calendar year

Each day the IOP has been dropping from 1.00-3.00%, unbelievable