Alex mate,
You're digging yourself into a deeper hole here...
I am no expert myself but I do know that iron ore prices are negotiated DIRECT between the buyer and seller.
There is no LME trading house or secondary market that trades and hedges and speculates on the supply here.
Unlike other commodities and metals, this one, as well as the natural gas contracts are negotiated direclty between the customer, be they chinese or japanese, and the supplier.
The previous boom as I recall it, was more related to metals such as gold and nickel, but this one is being led by iron ore and LNG.
With nickel, copper, and uranium following closely behind.
From my reading of the picture, its in the early phases of an upswing.
And because some of these supply contracts are for 20 yrs or more, I believe its a prolonged upswing.
Some are calling it a super cycle.....time will tell.
There may be parallels with post war Japan and emerging China, but the scale of the two countries can hardly be comparable.
And supposedly India is yet to emerge ....
kp
You're digging yourself into a deeper hole here...
I am no expert myself but I do know that iron ore prices are negotiated DIRECT between the buyer and seller.
There is no LME trading house or secondary market that trades and hedges and speculates on the supply here.
Unlike other commodities and metals, this one, as well as the natural gas contracts are negotiated direclty between the customer, be they chinese or japanese, and the supplier.
The previous boom as I recall it, was more related to metals such as gold and nickel, but this one is being led by iron ore and LNG.
With nickel, copper, and uranium following closely behind.
From my reading of the picture, its in the early phases of an upswing.
And because some of these supply contracts are for 20 yrs or more, I believe its a prolonged upswing.
Some are calling it a super cycle.....time will tell.
There may be parallels with post war Japan and emerging China, but the scale of the two countries can hardly be comparable.
And supposedly India is yet to emerge ....
kp