sure - but stock price moves often dont reflect demand/supply shifts
what those moves suggest to me is that the chinese value adders are adding profit margin at Aussie iron ore producer expense. and so the influx of new money pushing into chinese stocks is going disproporationately to them.
that tells us little about whether the iron ore price will rise or fall between now and Xmas
the money wouldnt be chasing steel value adders if people thought the steel demand was going to drop off a cliff, whatever their short term profit uptick - so that's positive.
but frankly steel demand was rising even as iron ore price fell from 180 to 100.
stationary or rising demand doesnt necessarily mean rising price.
and thats whats important if im going to buy an Aussie Fe stock
AGO Price at posting:
26.0¢ Sentiment: Sell Disclosure: Not Held
BCI Price at posting:
90.0¢ Sentiment: Sell Disclosure: Not Held
FMG Price at posting:
$3.09 Sentiment: Sell Disclosure: Not Held
MGX Price at posting:
46.5¢ Sentiment: Sell Disclosure: Not Held
