AFR reports on analysts call of spot dropping to $120 - $140 over coming weeks, but to average $150 for the remaining qtr. Vale is putting downward pressure on the spot by agreeing to sell at spot to Chinese steel mills to undrecut teh Aussies. RIO recently sold Pilbra ore at $150, under the current spot of $153.
All in all, we should see a return to stronger spot in mid term, but could see some further big drops in the short term, add rising freight costs to that, due to increased freight activity, and you're no doubt going to see some bad press for small marginal producers.
Could be some good buying on IFEO in the next month?
TYX Price at posting:
69.0¢ Sentiment: Hold Disclosure: Held
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