From Bloomberg, Jul 8, 2015, 7:00 pm
The iron ore rout isn’t done yet… …”the raw material will extend declines into the $30s a metric ton this year”, according to Andy Xie, an independent economist…
To read the entire article, go to http://bloom.bg/1CpJtLZ
Steel demand in China is shrinking while iron ore supplies are still rising, says Xie, a former Asia-Pacific chief economist at Morgan Stanley. “China’s steel production is actually declining, that’s the reality,” Xie said…
“All the high-cost guys have to shut down for this market to stop falling. It’s not going to stabilize because Chinese demand is coming back, that’s not going to happen in the foreseeable future.” —————
This is another bad sign for mine and rail projects on the books to be built to add more ore and met coal supply that won’t be needed for quite a while.
Are you doing your due diligence strategic plan reviews?