Iron Ore Price, page-31

I would have thought Vale, like FMG would be selling in USD and converting to Brazilian Real for domestic costs.

With Real down, surprised at the high exchange loss reported

Unlike FMG they are a diversified miner and now that shipping & fuel costs have declined and introduction of 400mt super vessels they are catching up to RIO in the costs department but are still ahead on ore volumes mined & shipped

The big 3 RIO/BHP & Vale in the past few weeks are starting to show the effects of the strategy of over supplying the market, with profits declining.

In my opinion all three did not count on IO price reaching this low level and the rate of closure if high cost mines in China & elsewhere.

Not only have they stuffed up the market, they have all reported significantly lower profits from their IO divisions.

Perhaps their strategy of ramping up production in a low demand phase for steel is starting to show that their strategy as being flawed, which they have yet to admit publicly, sooner or later their shareholders will ask why are pusung a strategy which can only benefit the end user, the Chinese steel mills.

As usual the CEO's like Kloppwrs (BHP) & Albanese (RIO) stuff up and get replaced, I do not think that next round of redundancies arenot too far off, with Walsh & Mackenzie exiting with a swag of money as a reward for rewriting the theory of matching supply/demand.

EXTRACT

Vale is boosting iron-ore output to a record, helping to expand a global glut as the top producers squeeze smaller miners for market share amid slowing demand from China. While a declining currency in Brazil and Canada helps Vale cut expenses at its main operations, it boosts the cost of servicing dollar-denominated debt. Foreign exchange and monetary losses curbed profit by $1.26 billion, the company said.