CBA’s Dhar Sees Iron Ore at $100 a Ton

The video discusses the significant impact of supply disruptions on iron ore prices, driven by issues with major suppliers like Vale. It examines the extreme market reactions and the potential for prices to rise further. The discussion also covers the implications for Australian and European miners, highlighting the benefits for companies like BHP and Fortescue due to their lower costs and reliability. The video concludes with an analysis of the subdued Chinese steel market and the potential for negative margins.

What major event has caused extreme price movements in iron ore futures?

• Supply disruptions and force majeure declarations

• A new mining technology

• A decrease in global steel production

• Increased demand from Europe

What percentage of global seaborne supply has been affected by the disruption?

• 2%

• 3%

• 4% to 4.5%

• 5% to 6%

What was the market price of iron ore per ton before the supply disruption?

• $75

• $100

• $50

• $95

Which Australian miner is expected to benefit the most from the current market situation?

• Rio Tinto

• BHP

• Vale

• Fortescue

Why are companies like BHP and Fortescue considered major beneficiaries in the current market?

• They have higher production costs

• They are new entrants in the market

• They are less reliable

• They offer lower costs and higher reliability