We also have high quality ore unlike some others. This will help...

We also have high quality ore unlike some others. This will help when marketing to the Chinese who are likely to reduce the use of inferior ore to help improve their air quality.

Such a shake out is not unprecendented at this time of the Chinese business year and should be put in context, hard as that is to do when the tree is being shaken. Many have written about the closing of businesses over the Chinese New Year period and it might just be that the data from this period is being used to assist in the lowering of the IO price to reposition the steel industry for some more sustainable operations.

The domestic price action will also have been affected by short sellers, margin calls etc, especially now that BCI is in the ASX200.

All in all, in recent days and weeks analysts have been upgrading and recommending IO stocks based to various assumptions and not one of them saw this shake out coming so best we make our own assumptions about where all this is headed rather than listen to their broken record.

When the shorters move to the $A the focus will shift to those who benefit.