Oil in similar situation to IO. The big IO miners kept increasing supply regardless of price. Even know their output is scheduled to increase despite IO halving in just 12 months. Their thinking is that eventually the higher cost producers will go bust. What they didn't anticipate is how long the small ineffecient chinese mines with low grade ore could keep going, nor that world demand for steel would slow. Eventually the low cost producers will be eliminated but it takes time. Oil not much different except i see a return to previous prices in IO taking far far longer than those for crude oil. I mean will IO ever go back to $90 let alone $130-140??
STO Price at posting:
$7.29 Sentiment: None Disclosure: Not Held
WPL Price at posting:
$36.35 Sentiment: None Disclosure: Not Held
ORG Price at posting:
$11.13 Sentiment: Sell Disclosure: Not Held
