January 2014 Analysis

Industry Trend Analysis - Iron Ore: Solid Expansion Could Disappoint Miners - JAN 2014

Despite our downbeat view on the Chinese steel sector, major iron ore miners in Australia will continue to derive healthy profit margins due to their access to one of the lowest-cost iron ore deposits in the world. While major miners are betting on greater economies of scale to boost margins, we caution that iron ore prices will buckle under the weight of supply. This could undermine revenues...