$175 is really nothing, yet, for the price of iron ore, as it falls from a near term peak of $230. A major reaction from the producers doesn’t kick in for another $30 bucks yet either, we’d suggest. But it will come.
Recalling that even $50 is still good money for BHP, RIO, and FMG, albeit not at all for the present valuations.
And not at all good for the long tail of tier 2 producers, whose all-in-cash-cost of production is notably higher, than the majors, with shorter mine lives and those that suffer a pricing discount due to lower grades.
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