why iron ore price will be strong10 Dec 2016 11:34
why bankers are wrong in predicting iron ore price? why iron ore price will be strong for certain time?
well, to your surprise, iron ore price is NOT decided by supply and demand - it is decided by whether Chinese steel plants are making monies or losing monies. why so?
1. iron ore is not replaceable, i.e. unlike oil, you can find oil shale or other engergy as alternative. what is the alternative for iron ore? no choice.
2. iron ore is controlled by 3-4 giants like Vale, Rio, other suppliers cannt destroy supply end. if price increases, can india under cut price by more supplies? no.
iron ore only reduced price to very low when chinese steel plants were losing monies. now, chinese steel price is high, steel plants are making money.
so, surprise for you, isnt it?
also Trump will "construct" new america, like china, so unlikely iron ore price will down to $ 60