Does anyone else get the feeling that from the feed of news coming from so called experts there is an unfounded consensus that io prices are destined to crash to $50 this year. Seeming very biased/ fake and for the institutions to somehow gain from for themselves. Could just be me but I feel a conspiracy.
Firstly io consumption is cyclical
2. EV revolution will require enough steel to replace every existing ICE.
3. Massive infrastructure plans by major economies
4. Chinese economic data shows 6.9% growth.
5.Indian economy flying under the radar with population set to overtake China in the very near future and set to have similar type economic boom to what China has had and still having. Rural populations moving to cities and wanting beter standard of living rather than rural self sustaining living. Shift towards use of technology and machinery and away from manual labor.
6. Much of Africa still waiting to have the same.
This screams Demand! DEMAND! DEMAND!!!!! For resources in general to me but if there is one resource that is guaranteed to ve indemand throughout these developments it's io.
So I will ignore the negative press and go with my gut on this one.
io will be in demand> $$$ price spread of quality is unsustainable and I feel has been manufactured by Chinese Gov manipulation of io market to benefit it's economy. I.e. we don't want your low grade io it creates slightly more pollution unless you will take peanuts for it, if it's cheap enough we don't actually care about pollution and will use all of it we can get our hands on. Thus big boys BHP and Rio will be winners short term but I see us having the final laugh.
The Chinese are smart and can overcome these issues of pollution and already are through mass scale air filtration towers. Investing in cleaner energy production through renewables and reducing coal powered PPs and choosing cleaner LNG PPs instead.
One thing remains though. A clean growing chinese economy not reliant on fossil fuels still requires a f*** ton of io.
Turned into a rant, so sorry but as far as I am concerned the writing is on the wall. Atlas is a sure thing. Io spread is unsustainable and io in general is still too low when you look at profits being made by steel makers. There is a lot of catching up to do.
My contacts in Dalian that manufacture steel pivot irrigators for the past year tell me week in week out steel is going up so get your orders in now not later so we can secure steel at current prices.
DYOR
AGO Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
