imported IO price in China down another half dollar today
the IO spot price is now at $123.5/ton. The price was down 8/10 trading days with $0.5 average in down days. It was only up in two days with 25c each of those days. It's now in a slow motion crush to sub $100 level by the end of the year. It's going to be long way down to $80/ton level in 2-3 years. Get out this long term loser while you still can.
When iron ore spot price in China drops below $100, most (if not all) of Chinese iron ore mines would have to be shut down, because they are among the highest cash cost producers in the world due to their lower iron grade; and in that case, they would have to import even more iron ores.
IO price plunged to $85 from $180 last year. Why you think it's not going to happen again. The price is determined by demand and supply equation. The China demand is dwindling faster than anybody can imagine. The bid producers are still ramping up production and they can produce the IO for 35-40/ton. So even at $80, they still make a lot of money. But CLF is different. It's a high cost producer at about $70-80/ton.
Once the price of IO goes below the cost of production then plants shut down and prices rise because of scarcity. Don't let the bearish talk of severe price declines fool you. The best thing fortelling a rise in Iron Ore prices are low prices