It will OPEN down exactly $1 if that is the size of the dividend. And the price will not show down $1, but it will be $1 lower than the official close the day prior.
"Stockpiles of imported iron ore across China's ports stood at 112.35 million tonnes last week, according to data tracker SteelHome. That is not far below a record high of 113.7 million tonnes reached in July.
"...The mountain of port inventory, up 30 percent this year, shows how well supplied China is with ore and how slow the rate of consumption has been despite imports surging this year.
China imported 77 million tonnes a month on average this year, nearly 10 million tonnes more than in 2013, based on the country's customs data.
The import spike largely reflects the increase in shipments to China by top suppliers such as Australia and Brazil as some high-cost Chinese mines were shut out by the price plunge.
But while a large number of small Chinese mines have been forced to close, domestic output is increasing as the big state-backed producers expand or consolidate.Surrounded by plentiful supply, many Chinese buyers are more selective and in no rush to buy, even ahead of a week-long National Day break in October - a traditional buying period.
"This shows that they are very particular about the sort of prices and not all that desperate to buy, and they are shopping around for deals," said the head of a big Beijing-based iron ore trading firm which supplies major steel mills.
"I wouldn't be surprised if we see prices down at $70 by the end of the year. The market is going to stay very soft."
The lack of strong restocking appetite is likely to continue through the winter months, traders said, suggesting there is unlikely to be a sharp rise in China's iron ore imports even when domestic mines are shut due to the cold weather.
"In the past when the ratio of domestic ore to consumption is still high, heavy restocking occurs when mines are closed for winter. But imported ore is being used widely now so the additional demand for imported ore during winter would not be as big as before," said a trader in Shanghai.
Chines use of imported ore is up to 88%.
It's amazing that so many people don't know that. The share price opens the next day down the exact amount of the dividend. so the short position is up the exact amount of the dividend at the open.
50/50. What do you mean by rates "down"? They are hovering near 30 year lows. They are at cost in some cases. Rates go lower and shipping companies idle vessels that are young and scrap those that are old and they cancel orders. Might be a good thing.
I am starting to think that the market may be overdoing this sell off on the drillers. But my confidence is pretty shaken by now.