Is Karara now profitable ??, page-4

After looking at the results the government regulators in China have achieved in the past couple of months , most pundits would be expecting that restrictions on steel companies would continue .

Government regulators have achieved ;-

Higher steel prices which equates to higher company profits and taxes

Substantially better air quality and visability

Major enviromental benefits

If they do stick with their stance on enviroment and hence restrictions on grades of ore permitted to be used then you would thing there could well be a DEFICIT OF HIGH GRADE ORE for years to come till the iron ore producers catch up with the market changes !!!!!!!

remember under the current scenario some manufacturers were closed completely and others have majors reductions placed on them . If they all come back into production end of march and they are all required to use high grade ore - demand would go through the roof and the margin between high and lower grade ores would increase even further ?????

ENDLESS POSSIBILITIES -)-)-)