Lets be positive with IO

In light of all the pessimism from the usual vocal doom and gloomers against Aussie producers let's have a look at the upside view. My optimistic thoughts to counter the gloomy forecasts and views:

1. Major producers supply a majority of the world ore not all of it. There's still a market for several hundred tonnes for marginal producers with low costs. Most Australian marginal producers can and will survive as they are next on the cost curve from majors. Its Australian to support Australian producers. Understand? Why would posters want our own Domestic producers who employs thousands of Australians to close if they are some of the most competitive producers in the world?

2. More high cost Chinese producers will exit this year as they cannot survive the lows. With costs of 80-100 per tonne and higher they will suffer. They are stuffed no matter how much China attempts to support them.

4. For little doomers who fear Roy Hill. Consider that IF it keeps on schedule it will ramp up. By the time it ramps up, Chinese tonnes would of already exited out of the market. Vales extra tonnes is way down the track. By then India would already have 30-40 cities built hungry for more quality IO to ramp up growth meeting its 2022 100 city target and demand to import would of absorbed Vales expansions. All the doom on supply is exaggerated just like shorters views thinking IO has no bottom.

3. IO again has temporarily dropped from the sky with an overreaction inline with the Chinese stock exchange drop and Greece jitters. When China stabilizes and gets over its premature jitters focusing again on solid growth initiatives commodities should stabilise. Doomers need to take a chill pill...

4. Global growth is on the increase. China is still growing 6-7 percent year on year. India will build up to 10% growth and beyond as its urbanisation drive takes affect.

5. India will use more imported ore / steel to fuel such a growth. Yes it has capacity to supply itself to a certain degree but once India ramps up growth, it will also require the likes of China using Silk Road (who is now a powerhouse of steel manufacturing) supplying steel (using Aussie IO) to help fuel India's massive growth.

6. AUD will fall further. USD will increase as it raises rates. Again it helps our exports.