Iron ore prices fell the past 2 years from $130 a ton to less than $100 during Nov/Dec and it's likely to happen again this year. It's easy to get caught up in the bullishness of the iron ore business and recent strong prices, but seasonal forces come into play during the last quarter of the calendar year as Chinese buying dries up. Fortescue Metals (ASX: FMG) is the most vulnerable due to its higher-cost operations and 100% iron ore focus.

James Marlay

plays into the hands of RIO and BHP. If they continue to focus on reducing costs and disposing of non core assets they will be well placed through a dip in prices. Gav are you anticipating a dip with a recovery or sustained lower prices?