Join Australia's most dynamic and respected property investment community

WA Iron ore recovering?

Discussion in 'Where to Buy' started by hash_investor, 22nd Apr, 2016.

Tags:
  1. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    912
    Location:
    Sydney / Canberra
  2. pinkboy

    pinkboy Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    918
    Location:
    Mackay, Qld
    Don't confuse volume with price increase.

    The article says several official sources remain bearish.

    pinkboy
     
  3. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    436
    Location:
    Oz
  4. mrdobalina

    mrdobalina Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    990
    Location:
    On the ski slopes
    No chance. Even the article states about Vale: "...its expansion is set to accelerate later this year as it begins mining at S11D in Carajas, the industry's biggest development project."

    S11D will flood the market with 90 million tonnes per annum at the lowest cost of production in the world.
     
  5. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    196
    Location:
    Brisbane
    Hard to see any sustained rally in iron prices when the world's top three producers are going full throttle increasing volume with no foreseeable increase on the demand side.
     
  6. hash_investor

    hash_investor Well-Known Member

    Joined:
    11th Oct, 2015
    Posts:
    912
    Location:
    Sydney / Canberra
    Well there is clearly demand increase.

    Its strange to see property investors fail to realize supply/demand in other asset classes.
     
    Last edited: 26th Apr, 2016
  7. mrdobalina

    mrdobalina Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    990
    Location:
    On the ski slopes
    Clearly? Where?

    Supply curve is shifting right faster than demand curve.
     
  8. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    196
    Location:
    Brisbane
    Agree with @mrdobalina can you elaborate where you see the demand coming from to mop up the increasing volume? I am always interested in contrarian views, as long as there is some logic behind them.

    I'd love as much as anyone to see a sustained rally in iron prices, I hold a decent chunk of BHP amongst other stocks (not just a 'property investor' thanks) but I am not myopically trying to fit a recovery story to what I see as a small uptick in prices led by some opportunistic buying, need to see something more lasting before I put my money on the table.