The relative weakness in X this morning amazes me. It is weak because now Dofasco will go to Thyssen-Krup if Mittel buys Arcelor and who will buy X?
Go ahead and sell. You will regret it when X is probably taken over for $80-100 later this year.
I can think of half a dozen companies that are idiots if they don't make a bid for X sooon (e.g. NUE).
Taconite is less than 30% Fe. What you reference is a Direct Reduction Process. These already exist around the world. The conversion costs are quite high and increase as iron content decreases. For example, it would take less than 50% of the energy and other costs to convert 67% Brazilian ore to 95-98% Fe as it will take to bring 30% taconite up to the same level.
I say again, taconite is little more than dirt with a small amount of iron in it.
Thanks for your informative reply. You may be interested in the following link suggesting that Mesabi iron ore may be able to produce 96-98% iron nuggets in the near future.
The iron ore that USS owns in the Mesabi Range is
You raise a good point. I have followed NUE since 1990 and am familiar with their company culture.
However, you are also looking backwards instead of forward. Steel is more capital intensive than labor intensive (also why China doesn't matter along with Chinas lack of iron ore reserves). NUE would do well to take their market cap and buy X with stock.