The iron ore war is moving fast and not in a good direction. I began this year with guesses of a $50 average for 2015 and $40 average for next year but events are moving swiftly beyond these numbers. The major factor is the extraordinary death throes of Fortescue Metals Group.
FMG is moving very fast on cost cutting and seems able to bamboozle significant but feeble-minded market players into believing that it is the victim of the nasty people at big iron. The Premier of WA Colin Barnett is one.
Another is Aboriginal outfit Gumala, from the AFR today:
