Mustapha hows your alta ego going or have you decided to stop pulling your self off!
Well now that is an interesting comment on being a self sufficient man Are you offering To help me out so to speak?? Mining job flamed out, what are you charging Peter
newjez
14 Sep 2014, 02:47 AM
You may joke, but I betcha she asks for it.
If she asks for it i know just the man for the job. Peter
Are you using Viagra and taking zinc? It must be a heavy weight on your shoulders supporting the whole massage industry, now the miners have left. (Not to mention other parts of your anatomy)
Looks like it may bounce off 80, so there may be the odd miner left to share the load.
We don't actually know the price that ore is being sold at. It's probably close to the spot price but it won't be the spot price.
Prior to the GFC the estimates were about $76 and we are above that now. A disaster for some of the worlds marginal producers, but not for the big three and Roy Hill. Even FMG can survive at this price.
Any expressed market opinion is my own and is not to be taken as financial advice
We don't actually know the price that ore is being sold at. It's probably close to the spot price but it won't be the spot price.
Prior to the GFC the estimates were about $76 and we are above that now. A disaster for some of the worlds marginal producers, but not for the big three and Roy Hill. Even FMG can survive at this price.
Ah yea, and I could find some estimates that said iron ore would average $150 a tonne in 2014.
Not to mention all the pollies counting their chickens over it.
The price rise in iron ore is just a result of the Chinese engineering the price down, not so much deliberately as demand is falling anyway, but apart of the cycle its now in. On one hand they dont wont the price to drop to much because creditors wont lend against their diminishing capital holdings of allready finaced iron ore supplies diminishing their bottome line. On the other hand they are struggling as demand is reducing and a price relief is a help to their buisiness. Its a catch 22 for iron ore producers right now.
So what we saw this year was demand reducing, iron ore supplies increasing, and overstocking of iron ore on chinese wharfs and factories from reduced demand. This sent the price on the tumble, when this happens, financiers dont want to lend more as these companies already borrowed and stored iron ore is dropping in price placing the financiers in a much riskier position and reluctant to lend.
This sends the price down more. But eventually those overfilled wharves and factories use up supplies, As prices neared $80, many would have thought it might be time to stock up again, the fall slows and financiers are more relaxed about lending. So they all stock up again, in a big way at these prices, and the demand increases the price. At $85 dollars they have probably bought enough or dont want to pay anymore or the financiers will be reluctant to fund purchases over this price. It may head up a bit more , but once their stocked up again and witj reduced demand and increasing supplies, the price will drift back down once the latest buying frenzy dries up.
We don't actually know the price that ore is being sold at. It's probably close to the spot price but it won't be the spot price.
Prior to the GFC the estimates were about $76 and we are above that now. A disaster for some of the worlds marginal producers, but not for the big three and Roy Hill. Even FMG can survive at this price.
Yes i think you are correct. The point of this thread that i started is to point out that the "froth" money is gone. So if that "froth" money is gone the workers that hit town will be less in number and the wall of cash and financing will not be sloshing around town making every shitbox property the price of Windsor castle. So if you own a number of rentals getting 50% or 100% more than you would in a "normal" market in my opinion be prepared for a major shift to the downside. My opinion only thanks to Foxbats wise advise. I sold out of the market 16 months ago while it was white hot for 2 and 3 bedroom villas. Peter He told me then iron ore had only one way to go. He is saying the industry could even be stopped. But he is as mad as a Hatter not sure about that one. He is saying the U.S. could stop us trading with BRIC's, not even sure what that means, something about an embargo??? Anyway. Time as they say will tell. Won't it William.
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