Iron ore price, page-44311

FE on SMM and some other bits & pieces

No one actually knows the price FMG receives for its ore. Its certainly complicated! Just like the whole industry is.

Although it is expressed as a discount to 62% not a margin to 58%. We have many products, some are closer to 62% than others. And some of the lower grade ores receive a significant premium to the 58% because of low impurities - also highly valued. Some are lumps some are fines. Soon we will also sell concentrates of very high grades of Magnetite. We have lots of different iron ores.

There is also variation between the Port or Spot price sold in smaller lots and the seaborne prices sold in substantial ship load lots.

Anyway, I publish this information primarily as it provides us with insight into the Iron Ore price particularly as it pertains to FMG but also the market as a whole.
This provides us primarily with a sense of sentiment for the market.

It's no secret the bulk miners follow the DCE in particular very closely. It seems to have the most influence on the trading of the shares.

No one here can actually explain how the prices received by FMG are calculated. It is complex and largely secretly negotiated behind closed doors.

Anyway we are a very very cheap, highest profitable and reliable producer and have a growing product range of increasing quality ores. Iron Bridge will come on board at the perfect time with demands for very high ores pushed higher by the collapsed Ukraine premium Iron Ore industry and the sanctioned Russian iron ore market.



With steel production on the rise again in China and the worlds largest steel exporter in Russia out of the market largely, the price of steel only has one way to go.

Up

However it will need to as the profit margins in China for Rebar looked to have hit the wall. This could be problematic until we sell a dramatic increase in Steel prices along with more stimulus.

I am expecting both to occur over the next month.

Fingers crossed.

In the mean time, our big phat divvy is on the way and I'm buying ! Still way to much upside for me to hold back.

DYODD