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Iron ore - supply and demand rides again
Topic Started: 30 May 2014, 03:23 PM (44,265 Views)
Count du Monet
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peter fraser
16 Sep 2014, 09:57 AM
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.
Production cost of existing operations and repayments on the investment loans are two different things. If production is profitable on its own then production continues. But if the price gets too low the investors get cleaned out and ownership changes hands. The problem is there is now too much capacity for the demand, so low prices will remain for a long time. The 60's and 70's boom saw commodity prices remain depressed for a generation.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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Ex BP Golly
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peter fraser
16 Sep 2014, 09:57 AM
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.
Someone said fmg s debt is in us $.

As au$ drops fmg must hurt hard.
peter fraser
16 Sep 2014, 09:57 AM
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.
Someone said fmg s debt is in us $.

As au$ drops fmg must hurt hard.
Edited by Ex BP Golly, 16 Sep 2014, 03:40 PM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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newjez
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Ex BP Golly
16 Sep 2014, 03:40 PM
Someone said fmg s debt is in us $.

As au$ drops fmg must hurt hard.

Someone said fmg s debt is in us $.

As au$ drops fmg must hurt hard.
No, it's neutral.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Foxy
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Zero is coming...

it's over guys.
Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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newjez
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Mustapha Mond
17 Sep 2014, 12:02 PM
it's over guys.
Peter
I think you may have to wait awhile for your $65.

I'd say 80 is the floor for now.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Perthite
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More supply less jobs....

http://www.watoday.com.au/wa-news/bhp-billiton-to-axe-more-iron-ore-jobs-in-pilbara-20140917-10iat3.html

Transmutation at work.
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John Frum
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newjez
17 Sep 2014, 04:03 PM
I think you may have to wait awhile for your $65.

I'd say 80 is the floor for now.
You keep coming up with floors and they keep getting smashed!
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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Foxy
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Zero is coming...

All bow to Foxbat.

Peter
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lulldapull
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There is one iron ore design study on in West Perth right now......and my colleague is on the job as a casual contractor.

Just fucking ONE!!!!!!! :lol

Three years ago there were 64!!!!!

What a fucking joke. :bye:

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Foxy
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Zero is coming...

What do you really think will happen to house prices in Western Australia with the loss of all those VERY high paying jobs??

Peter
50% drop in rents coming.
Edited by Foxy, 17 Sep 2014, 08:32 PM.
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