Worse case scenario for TTY now is for a FOB price of...

Worse case scenario for TTY now is for a FOB price of US$110/ton. This the price that some of the steel mills in China have accepted. This means an income of $263 million and a profit of AUD$150 million pa. (less $7.9 million for Nobles commission) not bad for a company with a market cap of just $63.5 million.


BEIJING, Apr 26, 2010 (SinoCast Daily Business Beat via COMTEX) --
Part of the steel mills in China have accepted a 96.4% hike in the benchmark iron ore price settled between Vale SA and Japan, a move that will weigh heavily on the profitability of the domestic steel industry.

Some of the steel mills in the country have no other choice but to procure the raw material from the Big Three miners at a quarterly price settled between Vale and their peers in Japan and South Korea previously, confirmed executives for state-owned steel mills. The free on board (FOB) price of iron ore from Brazil will stand at USD 110 per ton in the second quarter of the year, according to the quarterly contract Vale signed with Japan and South Korea.