There is an amazing recovery in iron ore prices. Eight month highs and iron ore prices are back to levels where a lot of projects are now profitable. It's making all the ore players business at this spot price.
[caption align="alignright" caption="Vale's Conceição iron ore beneficiation plant"] 
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Ore prices are choppy because it's not an exchange traded metal, so customers have the ability to control and push prices around. China has clearly stepped away from the table forcing prices towards recent lows with price hitting $86/ton.
China is restocking even if real demand is not gangbusters. This will continue, and even if there is volatility in spot ore, we are not going below $110. In fact we are over $160 before we are below $110 in my view.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
