Iron ore price, page-11194

Disagree completely in the medium and long term.

There was no 58% (and lower) seaborne index prior to FMG and mining boom at the time, it didn’t exist. Mature steel markets of japan, South Korea, Europe and America for the most part don’t use these lower grades as productivity is king as costs rise (there are power, coal, waste and productivity cost influences of using lower grade iron specs). China is feeling economic, political and environment pressure to take steps in the same direction. I hope India also moves in the same direction.

Upgrading low grade FMG spec products to pellet feed or pellets would also be beneficial to WA in terms of jobs and taxes but it’s never got off the ground. HBI failed. Perhaps FMG poking around with gas and hydrogen could make it work to becomes the worlds lowest cost haematite pellet producer. There were calls on other threads for FMG to look further at diversifying away from China, high grade is one avenue.

Looking forward to FMG poking holes in equador in search of a commodity with much better long term prospects than 58% Fe.