There's plenty of surplus capacity that the major miners can bring on line in both Australia and Brazil. China has gone from being a price-taker while it was attempting to grow at ridiculous rates to being a price-maker while growing at a more sensible rate.
The surplus capacity can be brought online as needed to maintain the price where it is or maybe a little higher. But the screaming demand for iron ore is over - I think even the Chinese are scratching their heads and thinking "we used to pay HOW MUCH for iron ore ?" Japan did all its growth at $20/tonne, China at $120/tonne.
So all the talk of China, India, etc really proves the bad boy Raine Square Rampers just don't get the iron ore market. And the recent post querying Arrium's market cap shows they also don't understand integrated steelsupply chains vs iron ore mining.
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