RE: China's iron ore strength cancelled out by world weakness24 Jul 2020 13:05
That article to my mind presents a perfect storm for Iron Ore, demand although flat, is showing strong China demand and weak rest of world, smart money says that China demand will be high for some time, but rest of world will increase in strength, as stimulus increases during recovery, hence demand will rocket over the 6-36 month time frame.
Given the price is already very high for high grade ore, then price will increase over the medium to longer term (say 6 months up to three years).
That then means what is important is supply side, always comes back to the world needs ore, and we have a major amount of it in the ground.
prices and projections will be in many minds, so getting a supply may be needed shorter term given timescales to get online.
as ever just needs a bit of firm news to get this really moving, not just another study.
When it comes, though, and it will, this will rocket.
Aberdeenman