Iron ore price, page-41493

It is just more proof that analysts don't know what they are talking about. Analysts writing these low end reports are either;
1. Young wet behind the ears graduates writing reports. Why would we want their advice?
2. Old but have not made enough money to invest for themselves and so are in a job as an analyst to earn money since they cannot earn enough out of investing. Why would we want their advice?

Basically the only sort of analyst whose advice we would want are the high end ones earning big bucks. But their advice is certainly not available in these public notes. I have access to some of this high end advice and it is excellent quality. Some of it is positive and some is negative but the quality is excellent. The public analysts notes we see reference to here on HotCopper are rubbish not worth reading. We are better off ignoring these low end analysts and doing our own research.

The information that is public about iron ore prices that is excellent quality is from the company executives themselves. There is a massive amount of information in company reports written by iron ore company executives. These company executives are highly succesful mining industry veterans and there is a lot of data available if you go through the company reports.

The sentiment of these company executives is incredibly bullish. Much more bullish than I can ever remember. The sentiment expressed overwhelmingly by company executives is as follows;
1. The iron ore industry has chronically underinvested the last 5 years due to lower prices initially then concern about China more recently (a BIG positive for iron ore prices)
2. Steel production hence iron ore demand has grown consistently albeit with blips such as from Evergrande (a positive overall for iron ore prices)
3. Hence iron ore is in short supply and there is no short term fix to this in site. (a BIG positive for iron ore prices)
4. Chinese steel mills are seeking high quality high grade ore for pollution reasons (a negative for FMG overall but this is the reason FMG is building IBO)

On the whole the sentiment of company executives towards iron ore prices is more bullish than I can ever remember. They are normally very understated but some have written really bullish data recently. It is worth your time to go and read the company reports.