/biz/ - Business & Finance

>VALE SOARING PAST $19
BUNDA bros WW@

Morning BUNDA bros, I hope you haven't forgotten:
China normally buys their Iron from Australia (60% of the iron they buy)
However, in the last several weeks, the conflict between Australia and China has rapidly escalated - to where China has put on a ban on coal imports from Australia. It is fairly unlikely that China will outright ban Australian Iron (out of necessity); however, these increased tensions will incentivize Chinese Iron buyers to source their ore from non-Australian sources as much as they can
VALE being the #2 seller will capture Australian iron marketshare
Chinese iron buyers / steel producers want to increase their production to the MAX right now - the price of steel has never been higher! Since the price of steel is so high, they are incentivized to increase production and buy as much iron as possible - boost their inventories of iron, just in case there are supply disruptions / waitlists (no Chinese steel mill wants to have to halt production for a month while they wait to receive more iron) Increased purchases of iron at these record high prices is fantastic for VALE