Iron ore price, page-41795

The Flying Pork Chop posted on Hot Copper at 4.27am this morning, who on god's earth is thinking of putting a post on Hot Copper at that hour.
It is the same furphy that he has posted in the past! The price of iron ore should be $50.00 a tonne. Well. The average price for houses over the last hundred years is probably $50,000. If a realestate agent turns up at your door and offers to sell your house for $50,000 today you would tell him or her where to go. They could argue the same as Pork Chop that the average price spread out over one hundred years is $50,000 and bring out all the charts in the world to back up the claim. It's simple!!!!, current market value, the current market value for a house in your street is probably 1 million dollars. It's that price because that is what people are prepared to pay now for a house in your street. It does not matter what the price was last year or 10 years ago it's the price today.
The same for iron ore, it's very expensive to start a new mine, banks and shareholders demand a return on capital, that's why iron ore is hovering at around $100.00 a tonne. It's about the cost of production for lots of miners except for the big 4 BHP, RIO,Vale, and FMG because of the sheer scale of their operations they will still be generating good profits at $100.00. Do yourself a favour Pork Chop, when you wake up at 4 O'clock in the morning go back to sleep.

Another up day, Good Luck!!!