Iron ore price, page-178

Hehe, just report whatever the number is, the fall was already priced in SP yesterday.

US$84.20 down $3.20 or 3.6%

IO Future finished at 586 yuan, down 6 or -1.01%. But up 9 yuan from yesterday afternoon‘s close.

Looking for IO future to stablise today, if it is, it‘ll give steel mills confidence to purchase IOs. The demand is there, we just need IO price to be stable, doesn‘t matter if it‘s $80 or $90.

At US$80/dmt, Cash flow is US$550M per month or P/E 4 at current SP.

I‘ll be happy even when IO is US$70 and every analyst agrees this is the LT IO price. What we are seeing in the last month is that more and more analyst are upgrading IO price this year, once the US House pass the Obamacare repeal and replacement, we‘ll see tax reform and infrastructure plan in focus, then a boost to SP.

DYOR.

Frank.