Iron ore prices6 Aug 2023 14:41
What would be useful is if CJ actually understood how iron ore prices work.
On 14 June, he wrote the following:
'The three year low is $83, there are no signs of a return to this level. But.....even at this low price we have a very profitable business'.
Errr, no.
FOB costs estimated to be c.US$60/t. Just to help CJ out here, the quoted iron ore price is for the 62% benchmark price delivered to China. UFO is expected to produce a c.60% Fe, so it will receive a discount - which is currently around $4-5/t. Then you have to deduct the cost of cartage, insurance and freight to China. At an iron price of below $100/t, this project will not work.
Simple maths.