SDL 0.00% 0.6¢ sundance resources limited

the facts

  1. nk
    2,932 Posts.
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    OK punters since 2001 chinese iron ore demand has gone from 100 to 350 million tonnes pa Thats why the price of iron ore has gone up

    India supplies China with iron ore, once Indias internal demand picks up that supply will diminish. Currently I understand it is around 60 million tonne pa, but I stand to be corrected on that one

    forecasts from those who make a living from such things except Chinese demand in the future to grow at around 10 to 15 %, or say 35 to 60 million tonne a year.Much less than the 30% plus previously

    So say we need another 120 million tonne of supply to meet the Chindia needs

    Now for the nasty bit for SDL punters called the supply response

    CVRD is excepting to bumb supply up 100 million tonnes pa

    Forestcue is anywhere between 50 and 200 million

    BHP just announced it wants to build a billion dollar deep water port in WA. It wants to increase capacity by 200 million tonne pa over the next decade

    As for Rio, well I admit i don't know.

    So between these big guys we already have potentially 500 million tonne pa of extra supply on the market before SDL gets its first boat full

    Good luck!

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