Welcome Guest [Log In] [Register]


Reply
Iron ore - supply and demand rides again
Topic Started: 30 May 2014, 03:23 PM (44,294 Views)
MMM
Unregistered

newjez
17 Jun 2014, 09:15 AM
Can you expand on this peter?
Was thinking the same thing.

Rather broad comment, with nothing whatsoever to back it up with.

"REPLY WITH QUOTE" Go to top
 
Ex BP Golly
Member Avatar


newjez
17 Jun 2014, 05:41 AM
Seriously, does anyone actually know Timmy? I think we should find out if he has died before we bitch too much about him. Do any of the bulls or Alex know him? Seems strange he would just disappear. Send us a pm mate to let us know you are OK.
Not Fooled as well.

I think he had even more posts when he pissed off after he realised you could buy a castle in Japan for the price of a privatised car space at Sydney airport.


newjez
17 Jun 2014, 09:15 AM
Can you expand on this peter?
I think Peter is talking about our culture of entitlement.

Don't you remeber the workers party givernment brought in that super profits taxation thingy on miners?

You know, where in exchange for the tax that would fill government coffers, givernment would in turn backstop mining companies if everything turned to shit.

That right Peter?
Edited by Ex BP Golly, 17 Jun 2014, 09:58 AM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

oh dear.

http://www.smh.com.au/business/markets/currencies/australian-dollar-under-pressure-from-sliding-iron-ore-price-20140617-3a9ip.html

Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

I can not believe it but......

http://www.bloomberg.com/news/2014-06-16/imf-cuts-u-s-growth-forecast-sees-scope-for-zero-rates-longer.html


Peter


At 0% interest rate one person could buy everything in the world in a micro second.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
Lef-tee
Default APF Avatar


peter fraser
17 Jun 2014, 07:02 AM
Lef-tee
17 Jun 2014, 06:46 AM
The big miners will surely survive - some of them have been in the business for more than a century and have weathered many storms (although Rio was touch and go for a while there). They know that resource demand is cyclical and are generally prepared for the downturn.

But the fact that they will pull through should not be equated with everything and everyone else being hunky-dory. Plenty of people I have spoken to in the industry seem to have some difficulty coming to terms with the fact that boom and bust means just that - boom and bust. I suppose that's understandable given that the astonishingly long run of this boom may have created the notion of the situation being "normal, certain and permanent - unchanging except in the direction of further improvement" as Keynes would have put it.

Regardless of what else may happen, the end of the titanic investment boom is coming. Sooner or later - and it present it's looking like sooner - the resource companies will no longer continue pumping vast sums into expanding output capacity at a blistering pace needed to feed the demands of an exponentially-growing giant and large numbers of very highly paid - for what they do - workers will no longer be required. The fact that a handful of Wall street fat cats are doing ok will be of no comfort to them and of little assistance to Australia unless those fat cats decide to re-invest that money here.

In short - we really need to appreciate the difference between mining production and mining investment.

The recent rebound in mining sector jobs appears to have fizzled
I don't disagree, but the end of the mining boom should give a boost to the rest of Australia.
Well it would probably be helpful if certain states and the federal government were of a bit more of an expansionary mindset and the royalties and tax revenue flowed back into the economy via government spending - but that seems unlikely any time soon. If that fact were to change, I might change my mind.

Once resource company investment in expanding output begins to slow down significantly - what here in Australia will they be investing their profits in and to what extent compared to the current investment tsunami?

Actual mining and energy extraction will probably employ more people than it did before - depending on what happens with prices - but the actual process of mining and shipping dirt has never employed any significant number of people in Australia. A large number of mining jobs that exist at present do so to service investment in new capacity and when this has been satisfied they will no longer be needed.

You've held this position for quite some time Peter and I can't recall that you've ever explained it (apologies if you have but I have forgotten). Can you explain why you feel the benefits of production will nullify the loss of investment spending?

In the interests of trying to expand my understanding, I just want to know if I am mising something major.

PM me if you have a hot investment tip :)
Profile "REPLY WITH QUOTE" Go to top
 
Blondie girl
Member Avatar


newjez
17 Jun 2014, 05:41 AM
Seriously, does anyone actually know Timmy? I think we should find out if he has died before we bitch too much about him. Do any of the bulls or Alex know him? Seems strange he would just disappear. Send us a pm mate to let us know you are OK.
You truly are a despicable arse wipe. ..

Utterly disgusting you FW.
Don't pretend you give a shit.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

Oh oh

http://news.smh.com.au/breaking-news-business/iron-ore-price-drop-has-miners-uneasy-20140617-3ab9f.html


Price point marketing???

https://www.youtube.com/watch?v=0U2IHK0S720

Can you make it cheaper??

https://www.youtube.com/watch?v=hgHtyOkJHew


Can you cut the price to help me out :D

Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

Maybe if interest rates could go lower we may get a bounce in iron ore prices.

Maybe iron ore producers could borrow money at minus 1% and stockpile the ore.

I have a plan.

Rio could buy ore from BHP and dump it in one of their mines that is at the end of it;s life, then Bhp could buy ore from FMG and store it at their mine.
FMG could then buy ore from both BHP and Rio.

This could keep the mines going.

Wait a minute..

What if the miners got rid of their heavy trucks and used utes from Holden and Ford???

Hey they would need 1,000's of them, they could drive around with 1 ton of ore in the back rather than 140 tones.

Hell they could drive the utes full of ore to each others mines for storage, i mean what better investment for an iron ore mine than, well iron ore.

This little dog and pony show could go on for ever with negative interest rates and a hand out from the government.

And just think of all the employment it would create….

Oh and the tax the workers would pay could fund it all..

It;s just a brave new world.

Peter
:D
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
newjez
Member Avatar


Mustapha Mond
18 Jun 2014, 02:09 AM
Maybe if interest rates could go lower we may get a bounce in iron ore prices.

Maybe iron ore producers could borrow money at minus 1% and stockpile the ore.

I have a plan.

Rio could buy ore from BHP and dump it in one of their mines that is at the end of it;s life, then Bhp could buy ore from FMG and store it at their mine.
FMG could then buy ore from both BHP and Rio.

This could keep the mines going.

Wait a minute..

What if the miners got rid of their heavy trucks and used utes from Holden and Ford???

Hey they would need 1,000's of them, they could drive around with 1 ton of ore in the back rather than 140 tones.

Hell they could drive the utes full of ore to each others mines for storage, i mean what better investment for an iron ore mine than, well iron ore.

This little dog and pony show could go on for ever with negative interest rates and a hand out from the government.

And just think of all the employment it would create….

Oh and the tax the workers would pay could fund it all..

It;s just a brave new world.

Peter
:D
I worry about your sanity sometimes.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Profile "REPLY WITH QUOTE" Go to top
 
newjez
Member Avatar


Lef-tee
17 Jun 2014, 01:41 PM
Well it would probably be helpful if certain states and the federal government were of a bit more of an expansionary mindset and the royalties and tax revenue flowed back into the economy via government spending - but that seems unlikely any time soon. If that fact were to change, I might change my mind.

Once resource company investment in expanding output begins to slow down significantly - what here in Australia will they be investing their profits in and to what extent compared to the current investment tsunami?

Actual mining and energy extraction will probably employ more people than it did before - depending on what happens with prices - but the actual process of mining and shipping dirt has never employed any significant number of people in Australia. A large number of mining jobs that exist at present do so to service investment in new capacity and when this has been satisfied they will no longer be needed.

You've held this position for quite some time Peter and I can't recall that you've ever explained it (apologies if you have but I have forgotten). Can you explain why you feel the benefits of production will nullify the loss of investment spending?

In the interests of trying to expand my understanding, I just want to know if I am mising something major.

PM me if you have a hot investment tip :)
I would be interested in reading more on reverse dutch disease, I've found this, but it doesn't explain why
http://beforeitsnews.com/india/2013/07/the-myth-of-the-dutch-disease-finally-laid-to-rest-2441754.html
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Free Forums with no limits on posts or members.
Learn More · Sign-up Now
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy