What a lovely phrase.Now if all these companies were chocolate manufacturers,they would only run their equipment to produce if there was a buck to be made.
Easter and Xmas being prime examples of price gouging,which no-one really attempts to undercut.
All we're seeing here is the equivalent of the largest supermarket chain reducing restocking hanging out for lower prices saying in a quiet period give me stock cheap.
I note even the Australian Chinese controlled ore and pellet producers have been inclined to let their shore stocks rise rather then give their ore away to reap the extra during retocking which has started now.
Its the Big Boys with momentum and NO storage that HAVE TO TAKE THE IMMEDIATE MARKET PRICE.
I wouldn't bother including any project into the competitor list until such time as its actually producing.America is a wonderful place to find new plant and infrastructure built and abandoned to rot after completion due to economics.Steel Mills and all.Australias got a few mines with new plant just the same.
In the end if you have a 10yr contract for supply and influence market demand and price,then you control your supplier.Who needs to own them as long as they stay in business?
And that comes down to how much they get paid and why the floor price will always be maintained to ensure supply is guaranteed although by more efficient and cheaper suppliers as time goes on.
