What are the fixed costs though? i.e. even if they are selling...

What are the fixed costs though?

i.e. even if they are selling at a loss, stopping production would not remove all their costs. They would save the shipping $10 and some of the AU$35 loaded cost, but they would still have some fixed costs to maintain the resources, keep people on staff (or pay redundancy) etc. So selling at a loss and bringing in some income may still be better than hating and still having o pay the fixed costs.

So it only makes sense to stop production when the loss per ton is greater than the fixed costs that they would still have to bear even if they halted production.

I imagine this is why many producers keep on going even when underwater?

Does anyone have an idea of the IOP at which it makes sense to halt production on this basis? (and that calculation could be very different for different companies.)

cheers