Well on your first point - which I have often made - we are in violent agreement. The big 3 will always prioritise their superior internal options. Which goes to the start of this thread and se
But that is inextricably linked to the second point. You can't look at SDL and say how does it stack up after ignoring the bulk of new expanded tonnes simply because Rio, BHP and Vale own them. They all go to the single cost curve that sets price. And SDL is expensive compared to these projects
SDL (either standalone or buy HL -not China) won't change long term pricing as it is better than the marginal project. How does it provide leverage?
Its actually in Chinas best interest that the big 3 completely dominate the cost curve and push out the 3rd cost quartile producers as well as the 4th. As they use to do 10 years ago ....... when the price was $20/t.
SDL Price at posting:
38.0¢ Sentiment: None Disclosure: Not Held
