Analyst long term consensus price for iron ore over the last couple of years has been 70-80/t.
Rio and BHP are behaving perfectly rational in a competive market, why would they expand when they can still make around 50% margins rather then let someone else eat their lunch
its a poor argument to make they they are trying to drive out the high cost producers to then push prices higher - the same high cost producers would back onto the market at this point if this argument held.
People have short memories that the iron ore price around 10 years ago was only 20/t - and rio had healthy margins and could expand at those levels.
GBG Price at posting:
2.5¢ Sentiment: Sell Disclosure: Not Held
RIO Price at posting:
$57.93 Sentiment: Buy Disclosure: Not Held
AGO Price at posting:
17.7¢ Sentiment: Hold Disclosure: Held
MGX Price at posting:
41.0¢ Sentiment: Hold Disclosure: Held
BHP Price at posting:
$30.73 Sentiment: Buy Disclosure: Held
