Iron Ore Spot price is $111 now with the cross currency rate at the moment. Not all that bad. Morgan Stanley is placing a buy on Iron Ore stocks. Demand for Iron Producers with high iron ore content of 60% + is assured. Iron Ore producers with low Iron Content will be under large pressure to supply with Larger Capex costs. China has very low grade Iron Ore Very deep down and, it costs around $75 a tonne to bring into production. They also have pollution energy constraints which may bring a large structural shift towards producers with High Iron Content. World wide global steel production is to grow this year around 4%. Then there is the upside of the Manganese.
Iron Ore will rebound and the SP with it. IMHO
TRF Price at posting:
7.6¢ Sentiment: LT Buy Disclosure: Held
