Sell or Stop Loss Making Business, page-16

The steel operation should have a good year. the $A is down pushing up the price of imports locally, and making ARI and BSL more competitive in the export market. Iron ore is sourced from ARIs own mines, and coal is way down.
The steel market is as good as its been in a while.

The rural sector will pick up as good rain and surging cattle market boost demand for fencing, sheds and so on. The cranes are busy in Sydney and Melbourne, especially Sydney. Lots demand for reo.

ARI is only 30% geared and that's not too bad, but interest rates are low and falling also. Bunker oil prices are down and may fall further, a major determinant of export shipping costs.

Chinese iron ore mines are high cost and low grade, and they are not all that well endowed. Surprised they are burning up a strategic resource for what gain? If China cuts back steel production, they will have to buy more from Korea etc, who have no resources of their own. So where will they get their ore? Mainly from Oz. Its the best price-quality, lower distance haul and high reliability picture.

If I wanted to buy quality steel I'd choose Australian first. I can bend Korean fence star pickets with my bare hands. Try that with Oz steel.