my comment in previous post was not directed to u
Post# of 8059
Posted On: 11/07/2013 7:04:17 PM
my comment in previous post was not directed to u KUBI -post was in process before u posted
we've posted articles which said China domestic marginal costs were 120-180 (hard to believe 180) but 12-13-10 agmetalminer said china's domestic cost then of 150 (hard to believe 150 also but these are figures in independent articles -probably tending to higher cost significant marginal producers-like the 4% ore producers) would set floor for iron prices -which obviously didnt happen due to volatility, manipulation and other factors
china is also the biggest producer and we've posted articles re their domestic ore % continuing to drop-avg of 15% last article on this (which would explain high marginal costs) but as low as 4% for individual companies (tv documentary- what is cost of 4% ore?)
I have to wonder whether this means china is running out of viable reasonable cost ore % production, which could greatly impact the supply side-but i dont remember reading about this anywhere and thus this is something perhaps not being fully taken into account -not surprising really as most experts are.....
when chinas domestic cost exceeds import prices chinas domestic pro will fall,reducing supply and thus boosting prices
big boys have higher overhead and sometimes spend billions in railroads etc just to get ore to port -like article grajekk posted a long time ago re iron mine on Labrador border was going to spend several billion on a railroad and a 1000 rail cars-so over time, as easier to access deposits worldwide have been combed over, this will raise prices for those producers,which is especially good for us and others because the big boys have been incredibly greedy beyond any reasonable belief and have many times foolishly hurt iron prices in their attempt to gain greater market share vis a vis each other-opposite of OPEC etc
we've posted articles which said China domestic marginal costs were 120-180 (hard to believe 180) but 12-13-10 agmetalminer said china's domestic cost then of 150 (hard to believe 150 also but these are figures in independent articles -probably tending to higher cost significant marginal producers-like the 4% ore producers) would set floor for iron prices -which obviously didnt happen due to volatility, manipulation and other factors
china is also the biggest producer and we've posted articles re their domestic ore % continuing to drop-avg of 15% last article on this (which would explain high marginal costs) but as low as 4% for individual companies (tv documentary- what is cost of 4% ore?)
I have to wonder whether this means china is running out of viable reasonable cost ore % production, which could greatly impact the supply side-but i dont remember reading about this anywhere and thus this is something perhaps not being fully taken into account -not surprising really as most experts are.....
when chinas domestic cost exceeds import prices chinas domestic pro will fall,reducing supply and thus boosting prices
big boys have higher overhead and sometimes spend billions in railroads etc just to get ore to port -like article grajekk posted a long time ago re iron mine on Labrador border was going to spend several billion on a railroad and a 1000 rail cars-so over time, as easier to access deposits worldwide have been combed over, this will raise prices for those producers,which is especially good for us and others because the big boys have been incredibly greedy beyond any reasonable belief and have many times foolishly hurt iron prices in their attempt to gain greater market share vis a vis each other-opposite of OPEC etc
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