Iron Ore Price Fundementals
In one year from 2 April to this day, price of iron ore rose 79 %, 102/ton from 80.8/ton to 183/ton including the recent pull back in the last week and a half.
Today's share price decline is a knee jerk over reaction to the current correction in the price of iron ore.
In perspective, the pull back based on the short time price value of the pull back (one and a half weeks) is minimal to Champion Iron's revenue based long term time price value of the increase in iron ore over the past year.
The current pull back in the price of iron ore is unlikely to last as it was based on sentiment and not the fundamentals of supply and demand that have not changed. Supply and demand fundamentals the ruling factor in commodity prices and sentiment price movements do not last long and revert to price trajectory based on fundementals.
Expect this price pull back to revert in the short term.