I don’t think that GRR would want to take advantage of the...

First 874 Last

Share
Profile

Follow
Windog

199 Posts.

7

14/02/19

17:47

Post #: 37440306
Share

Originally posted by Footmax: ↑

I have a sneaking suspicion that the main consequence of the Vale disaster won't necessarily be the IO price in the long run. China, as the largest producer of steel, does not want to pay too much for its IO - so prices will settle to some extent. That will always be the case anyway. The real effect may be in the board rooms of steel makers - and in Chinas case, that means at a government level.

Supply stability has always been a concern but maybe that will be reinforced now and traditional sources of supply will no longer be taken as granted to the extent it has been in the past. After two big mining disasters in Brazil, the government there is under some public pressure to ensure the safety of mining activities so we may see a slower recovery in IO production in Brazil - and big steel producers would be taking that into account.

Larger Australian miners will get an advantage of course - in the short term at least - but smaller operations (such as GRR) will also come into play. GRR needs to expand its production and its reliance on a single source of supply with a limited lifespan (2034). At the current level of production, it simply can't take full advantage of situations like the one that is currently being played out.

I am hoping that GRR sees that and works much harder to partner up the Southdown project with the view of fast tracking that project to fruition and I think it may be in a better position now to find a partner. Given the Chinese connection in GRR, it could well be that China may be the location of such a partner - or perhaps the 30% Japanese involvement in Southdown may make Japan think about it as well.

In any case, the rise in the IO price may not be the only silver lining for GRR and it could be the event that pushes GRR forward longer term.

Expand

I don’t think that GRR would want to take advantage of the current market conditions.

I think that GRR, or at least it’s major shareholder, wants a long term supply of consistent quality product. The Price of product, to me appears counterintuitive when assessing the interests of the major shareholder.

GRR Price at posting: 26.0¢ Sentiment: Hold Disclosure: Held
6 Upvote

1 Great analysis

Reply

Top Stories

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper Highlights: Your most watched stocks for Week 47, 2024

There are more pages in this discussion • 12 more messages in this thread...

First 874 Last

Add GRR (ASX) to my watchlist

(20min delay)
Last 23.5¢		Change -0.005(2.08%)		Mkt cap ! $266.1M

Open	High	Low	Value	Volume
24.0¢	24.5¢	23.5¢	$96.74K	403.4K

Buyers (Bids)

No.	Vol.	Price($)
5	311733	23.5¢

Sellers (Offers)

Price($)	Vol.	No.
24.0¢	11914	3

View Market Depth

No.	Vol.	Price($)
8	219779	0.270
9	458580	0.265
26	932290	0.260
7	172530	0.255
22	717920	0.250

Price($)	Vol.	No.
0.275	405759	8
0.280	942702	17
0.285	372332	13
0.290	1710676	31
0.295	651900	8

Last trade - 16.10pm 22/11/2024 (20 minute delay)

GRR (ASX) Chart

I don’t think that GRR would want to take advantage of the...

Top Stories

Sales growth pushes Lovisa's fortunes (and shares) upwards

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Scientific conference spotlights PYC's work on blindness disease treatment

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Buyers (Bids)

Sellers (Offers)