The market seems to think so with everything flying today. RIO is up approaching 6%, BHP is up 4% and FMG is up 3%. RIO itself captures the spirit, from the AFR:
On Rio Tinto estimates, China’s domestic production could fall to about 230 million tonnes by December, a reduction of about 40 per cent from the 400 million-odd tonnes the country was pumping out at the start of 2014.
Rio iron ore boss Andrew Harding told Fairfax Media on Thursday that the miner was $US2 a tonne away from its “break-even” iron ore price-target for 2020 of $US35 ($45) a tonne, after reducing cash costs to a world-beating $US17 a tonne in the December quarter.
