I read your posts with interest but I wonder if you truly understand what your saying . If China’s growth rate drops to 7% that means that the economy will double in size over the next 10 years, that’s a simple mathematical calculation. They will use in this 10 years as much iron ore as they have used since records were kept once again simple mathematics. And the following 10 years will double what we have used so far and if China maintains a 7% growth rate it will double in size every 10 years! Now tell me this where is this going to come from? Is there an iron ore tree somewhere? Can we grow it? No so what will happen to the price? Same can be said for all commodities I think..
My thoughts are that while the prices might drop to the tune of the uneducated long term they will have to go up or we will have to start growing it.
AZH Price at posting:
40.5¢ Sentiment: ST Buy Disclosure: Held
