next boat, page-532

Steph,

Fair observation and yes i do believe the iron ore price will retreat, but i think it is atleast 2 years away.

The iron ore price like you say will eventually come down, i dont believe to previois levels but thats just me, (never say never).

Whilst it is important to have high grades, it is not the end of the iron ore industry if there is lower grade ore, the world still has to go on. Our australian lower grade ore is still considered high grade, the ore they referr to is the locally produced lower grade in mongolia and china mined locally, this grading can be down to 29%, its this blend that is not the clean stuff, followed by lower grade coal from overseas countries, again our australian coal is better with less impurities.
Fkr those who have been around a long time and dont suffer from dimentia we have been down this road before and the same thing happens, china has a spat stops trading the aussie good stuff, then the chinese cities get polluted so much that china needs to close down manufacturing hubs to cope.
This pattern has happened before and no doubt china will end up buying our coal again in the future, its just the cycle.

For the iron ore grades sino steel/baowu group will still want that iron ore from the weld range and the sooner they do it the better off they are going to be.

Some of those sino deposits have magnetite in them and as the rumour mill goes magnetite is going to become the next big play for iron ore as it produces much less ore than DSO.
I know there is a big expensive process to start processing magnetite (upfront cost)
But this seems to be the way of the world.
This is why FMG have iron bridge at that is the way it is heading.

Sorry for the longwinded post, but i wanted to cover all angles to give the full picture.


Rooks