FMG set their June contract price at 30% discount for 56.7% Fe, 25% for 58.3% Fe, 10% for Kings (57.3% Fe) and 31% for Western Fines (58% Fe).
The discount is actually wider than Spot, and I think FMG is looking to "drive" the high cost low Fe suppliers out of the market.
Just my thought, I would do the same if my cost is US$10-20 cheaper than my competitions.
On the surface it may not look good at all, which showed in the SP last couple of days, but it might just prove a good strategy in the long run.
DYOR.
Frank.
Iron ore price, page-1659
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Last
$17.73 |
Change
-0.210(1.17%) |
Mkt cap ! $54.59B | |||
| Open | High | Low | Value | Volume |
| $17.86 | $18.00 | $17.67 | $106.1M | 5.956M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 3136 | $17.73 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.76 | 10562 | 2 |
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| FMG (ASX) Chart |