Here are the highlights of FMG’s December quarter production report:
By year end that is another 100 million tonnes online versus two years earlier, all of India’s fading capacity available from just one firm. When I wrote my 2013 forecast piece I was not aware that FMH had renewed its Kings push. Combined with Rio and BHP, that will be approaching 200 million tonnes of new capacity for 2014. And more again that year. With Brazil entering in a big way in 2015. I expect Indian capacity will also return by year end.
It’s a deluge.
Fortescue Metals Group Quarterly Report
did someone short (and double down) FMG lately ?
Yes, and at $120 it was not such a good idea. But at $160 it was.
HnH,
Apologies, but I’m not that familiar with the IO market, so basic question…
what is driving the reduction in Indian capacity? Is it a too high cost producer at levels below X or are they running down reserves?
Also, with the additional output from Brazil, do they have sufficient port access to export their increased demand?
Cheers
*supply
Sorry – meant to say “supply’ instead of demand for the last sentence
Government and judicial interference to clean up illegal mining and exports.
They’ll be back when it’s done but not like it was in 2010 – 100 million tonnes.
You’re welcome