I believe in the short to medium term the iron ore price will fall back to the mid $60s. However in the medium to longer term we will without doubt see the next bull cycle. We have had an imbalance (oversupply) for almost 7 years now and at present the demand and supply equation is probably near equilibrium. Hence a supply deficit cycle is due in the next year or two given so much potential supply (new developments) have been snuffed out since around late 2012. The big boys will soon make China pay up for the cheap ore she enjoyed over the last 6 years. There are no free lunches. Like Woolies and Coles selling bananas at 50c a kilo until Con the Fruiterer closes up shop then bananas back at $1.50
