FMG gets squeezed on lower grade ore
FMG gets squeezed on lower grade ore. Extract from the AFR: New export data has revealed the price discount for FMG's lower grade ore is widening. The miner was paid about 9% less than the benchmark price for its iron ore during the FY13, but the recently completed FY14 saw the gap widen to about 13%. While the average iron ore price in 2014 was just $US4 per tonne lower than 2013, the average price that Fortescue received fell by more than $US12 per tonne. The trend fits with reports that Chinese buyers have increasingly shifted towards higher grade iron ore. A recent report from Tyndall AM provides more perspective and looks at the higher grade operations of Vale and why grade is becoming more important as the supply response from big miners starts to see greater export volumes. Here is the link: (VIEW LINK) and the AFR article: (VIEW LINK)
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