With the $AUD dropping , $70/ton IO in USD is $84.36/ton AUD.
Our big producers are still selling into the current Qtr contracts
which were set at the end of Sept and the price for then is likely
$90/ton to Dec 3st.
There is an obvious drop in spot price ever last month of the quarter
(e.g. last Sept & last June) and one can only surmise that the Chinese
are using from stockpiles to down ramp the spot price.
Given that the pricing of IO is a Chinese national security issue,
it should also be a national security issue for us and our Government
(like that of China) should pay more attention to IO pricing rather
than leaving it to the so called "free market"
A Sydney based IO futures market would help to enable our small
producers to sell forward rather then run the coals of a Chinese
manipulated spot market.
mm
