Othaegun - i mean Logan, the macro looks good going forward. More economic growth going forward than not. So you can't even read a 5 year forward trend. They should have kept you in the mentally challenged classes before releasing you out of school. I sure hope they don't close that trailer park because even Obama won't give you a place to live. A disgraceful American.
just went long today on this, have been in and out for awhile, but feel safe at this level. FYI, my great grandfather had your name...from Scottland....good name! Are you saying you think this will fall a lot further?
Yes calder, here's the scoop. Iron ore use will always be around....Only problem is CLF production costs are way too high to compete with Rio, Vale, BHP and such. X seems more or less in the same boat but not as indebted as CLF. According to Citi, their production costs are about 100-110 a ton, but from what I've been reading closer to 110. Iron ore spot prices as of 5/27 are 120 and change (I think it was 120.73). Steel rebar futures are at year low. Remember last year iron ore fell to 90 a ton. China iron ore production is up, but demand is low (evident in last weeks manufacturing reading below 50 signaling contraction.) Supposedly chinese mills are putting iron ore supplies back on the spot market so as not to run into any cash flow problems since steel rebar demand is sinking. Another ten $ drop and Clf is breaking even with production costs. And after todays closing a head and shoulders pattern has been confirmed. Not to mention to greater market looks ripe for a correction but no sense in calling that because in this market for all you know we'll rally tomorrow. Keep your eye on the shanghai composite and that is usually a good gauge for steel and iron ore prices. It's also in the best interest for RIo BHP and Vale to have lower spot prices because it'll knock companies like CLF out of the game. I would put my money elsewhere if you really feel like iron ore will make a comeback.