Agreed, but CLF could show some confidence that iron ore is headed in the right direction. They could announce a buy back at these levels and as the stock moves higher, they could easily sell the shares back into the market with little fanfare and pocket the profit. A stock that has such a large short position, the company can use it to their advantage. It is like they feel that all they have to do is run a mining company, if that is the case, they need to be a private corporation.
QE is not getting beyond the balance sheets of the banks. Stop QE, interest rates will rise slightly and banks will increase lending that will get out into the economy. That economic activity will drive materials higher and inflation will pick up as the money the Fed has created earlier finally gets out into the economy.
With the US GDP coming in up 3.6, that should push iron ore over $140. And Friday's job numbers may come in over 250,000. Good news will out weigh any fears about tapering.
No need to BYOB, we have more drive through liquor stores than fast food places. Plus, I have a fully stocked bar as booze is cheaper than milk. After we have a few, we can use my air rifle to shoot quail. Only after a few drinks as it lowers the likelihood you will hit one. But that is OK, the 12 years I spent in NC taught me how to BBQ and make the best Carolina burgers and I still have a huge supply of Carolina hickory.
Only_de_troof, I am building in the foothills of the Sierras and my camera is full of deer pictures. Just yesterday a stopped my truck for a 3 point (6 point in the East) eating sage along the road. I had to whistle to get him to look up so I could get a better picture. I have another picture of a buck with 18 points, just wish I could post them here. We also have bear and mountain lions that pass by the back of our house. Then there are the golden eagles. We can't let our cat roam outside!
I don't hunt deer, but I realize that if it wasn't for the hunters, the deer population would not be what it is today. Urbanization (destruction of habitat) kills more animals than hunters. And it is hunters that provide more habitat and population management than any other group.
As spot prices are moving towards $140, the last time it was there, CLF was trading in the $40 range. These companies have realized that higher iron ore prices will reduce their debt load faster than increasing production. Also reducing CapEx requires them to conserve supplies to extend the life of their existing mines.
I have been a home builder for the last 27 years and learned long ago I could make more money building 5 houses a year than if I built 10. The reason is that overhead and extended liability kills profits. If all the other builders followed my business plan, we would have never had the housing crisis and all builders would be financially healthy. The same applies to the miners as well and they have finally realized it.
TSI Futures are on the Nymex, however the Chinese are using the DaLian exchange and they are the biggest player and is where seaborne prices are set.
Iron ore futures are not traded on the CME, the only iron ore future is on the Chinese DaLian Commodity Exchange. You can pull it up and get the current prices that close at 3:30 PM China time. All prices are in yuan and you can convert to dollars by dividing it by 6.109. They also have future prices for hard coking coal.
The only metals on the CME are gold, silver, platinum, palladium, copper and US coil steel.
Iron ore futures for all of 2014 are above $150. With spot closing in on $140, these analyst are way off the mark on iron ore prices and indicate they have other motives for throwing out ridiculous numbers. And GS is all about motives.
Not enough volume for short covering. Before the market opened, I thought we would see a rotation back into materials, I was wrong. Joerat posted the daily spot price and this move up is nothing more than a sizable move up in iron ore. Will it hold? I don't know, but given auto sales today, iron ore prices should continue it's move up.
I have always been down on the lack of company support and information, it is CLF's biggest problem, it is like they can't talk and chew gum at the same time.
The market value of their ROF holding is more than $500 million and therefore they can't mark to market it down. The IRS does not look to kindly at a mark down that they end up selling for more than they have into it. Normally a company waits like they did with the Amapa mine, get a sale that is less and write it down at that time. Plus, many of the cost of developing the mine has been written off or on a depreciation schedule and they can't just accelerate that without cause.
If down the road Ontario does not put in the transportation system, then they could take a charge against the asset, until then they will continue to hold the asset on the books as is.
We are not going to see iron ore below $135 next year. Demand is going to increase and most miners are cutting back spending like Vale announced. These miners need to build off earnings before they start expanding again which will limit supply for years to come.
What? I am seeing the market trade higher with all time highs while CLF has been dropping and it has been just the last few trading sessions that the market has headed down. I am seeing a decoupling of materials and the market like we are seeing a rotation in the market. That rotation will reverse and materials will see a move up, maybe today is the day with VALE up.