Iron ore price, page-47859

By default as companies cease operations costs will drop as demand eases. It's part of the cycle. Already high cost and mud tier operations are feeling the pressure abd many have shelved development or ceased productions to preserve capital and not sell at losses. These down cycles are critical to purge the market from the pretenders, and even if iron ore drops to the 60s fmg is minting money. Naturally not as much but the costs are ridiculously low.
Further, the recessions that occur will lower the demand and orices follow. I operate in one of the first countries to hit these inflationary pressures post covid due to corruption and mismanagement. Now, with all the attempts to curtail inflation and increase revenue via taxes and interest rates, the demand has dropped off a cliff. Now the raw material prices are starting to ease. Fuel increased 4x now dropped by 25 percebt and will drop further as demand not as high. I believe fmg will be compelling value and the lower it gets sold off, the more compelling it gets. Narurally divs will reduce. However the current sp will factor that in.