Thoughts?, page-2

My take is that KFE is outside of this sphere, as it is the only one I know of that has a closed market, which alone requires 17mt p/a to replace scrap iron. Add in growing internal demand (with over 170 million people and Africa's largest economy), at a production cost as published, even at these spot prices there is a good margin.

The current market is clearly an opportunistic shake-out by the majors and, as BHP stated last weekend, they expect this to be the case for some time, especially as they are increasing production from 245mt p/a to 290 m7 p/a, with Rio behaving similarly.