The more pertinent question perhaps is: what will be the floor price for iron ore and for how long? In January prices fetched were over US$140/ton but since has fallen to around US$114/ton and some expect it to fall further - even as low as US$80/ton:
MB Fund and MB Super chief strategist David Llewellyn-Smith said iron ore was in “free fall”.But it could get much, much worse.
In Australia meanwhile, the market has reacted poorly to the news coming out of China.
It appears CUF's sp has also reacting poorly to I/O price falls and possible further falls may yet mean further downward sp pressure. Is the current sp subject to further floor finds?? January I/O prices seem like a long time ago. Hopefully hedging will mitigate such but even so, not sure on how CUF would fare should I/O prices retreat to US$80/ton and stay at such levels for a while. AIMO
CUF Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
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