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09:41
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Originally posted by Scarpa
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This is a catch 22 situation given contracts for supply are generally long term albeit price is linked to the indexes of the day and right now 58% Fe is at a much bigger discount to 62% Fe than historically. So that means CD needs to be developed before current mines are exhausted orelse they will lose their contracts and will need to renegotiate when they redevelop a mine and who says the production may not be locked away by someone else and there is no room for you in the market given they are not exporting 62 Fe at that time - so continuous supply protects your market share..
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