Original article by Angus Grigg, James Thomson
The Australian Financial Review – Page: 13 & 19 : 31-Oct-17
SteelHome analyst Du Hongfeng says Chinese demand for iron ore is likely to fall by 56 million tonnes between September 2017 and March 2018, as steel mills reduce output during the winter months. He adds that this will require Fortescue Metals Group to maintain its current iron ore price discount until at least March, in order to retain its market share. Fortescue’s iron ore with 58.5 per cent iron content is currently being offered at a 23 per cent discount to the benchmark price for delivery in November, while its iron ore with 56.3 per cent iron content is trading at a 40 per cent discount.
FORTESCUE METALS GROUP LIMITED – ASX FMG, SHANGHAI STEELHOME INFORMATION TECHNOLOGY COMPANY LIMITED, UBS HOLDINGS PTY LTD