kha341 wrote: Thank you Clipper.
Let’s see, Chinese import of iron ore = 89.42 million tonnes in June. Given that China buys about 70% of global seaborne volumes, we can assume that the global trade of iron ore = ~128 million tonnes just for the month of June 2021. And our iron ore stockpile only = ~2 million tonnes? How difficult is that for us to sell, let’s say, 50,000 tonnes per month?
In recent weeks iron ore price = US$171.30/tonne, shedding about 27% since a record high in May. So the price of the benchmark 62% Fe = US$171.30. If we could only sell our lower quality iron ore at merely US$100 / tonnes, then:
1) Our stockpile would = US$200,000,000
and
2) A monthly sale of 50,000 tonnes would = US$5,000,000.
Btw, with a monthly sale of 50,000 tonnes we would only be able to clear our current stockpile in 40 months, never mind the annual production of 500,000 tonnes.