Iron ore price, page-29693

Hi all. I completely agree fmg is doing brilliantly operationally but respectfully this chat is believing it's own kool aid too much. Fmg is not just experiencing "the post divvied blues" and is not just being marked down by wicked institutions who are stupid. The share price may bounce it may not but it is important to be honest about the reasons for the larger fall than other IO producers.
Fmg produces a lower grade product than the other majors like rio. It also produces a lower grade product than the premium producers like champion. Thus when pollution in China becomes a problem as it has done fmg is disproportionately hit by it. That is why the price premium for champions product has gone up and it is why the champion share price is relatively healthy. It is why the share price pain has been more for fmg.
Maybe this situation will continue maybe it won't but it is important to recognise the fundamental underlying reason for the share price pain of late.
I am an fmg holder. I hope the share price rises. But as long as the china restrictions due to air pollution remain there will be higher risk for fmg than there is for most other producers.