I think what most don't consider is at $80US IO Price the Chinese mandarins had a hernia(Yes the Party still controls all huge business)at the swift shelving of developments and expansion plans and won't try the same sharp shake out this time,if they want to continue steel growth which THEY DO. They risked rolling FMG in its tracks which is soon to grow to 200mt and is proving a good price suppressant on its own.
Playing hardball when there was a supply shortage to meet,shoots your self in the foot as they have found out. A number of potential supply streams were killed dead in their financing tracks and still haven't started.
All good for those currently producing awaiting the demand to rise to the supply surge.
Much of the extra supply currently around is opportunistic at higher prices and I know personally of 3-4Mt that could stop tomorrow,with a bit more of a drop,or in planned 2yrs anyway if not.
Look at the life of some of the smaller 10Mt and less miners and mine life just isn't there.
DYOR+DYODD Average Chinese mined grade drop makes importing the only real economic option.
ARI Price at posting:
97.0¢ Sentiment: Hold Disclosure: Held
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