Normal
I don’t see global steel demand falling off a cliff, steel is consumed in almost everything we do, and given that our Australian Iron Ore miners are the lowest cost producers, I think they will do well throughout the cycle. They can make very decent returns with iron ore prices much lower than they are now.When a recession happens, it’s normally the industries with the least steel intensity that are affected the most, and when it comes time to stimulate the economy it’s the steel intensive industries (construction and infrastructure) that get the bulk of the stimulus.
I don’t see global steel demand falling off a cliff, steel is consumed in almost everything we do, and given that our Australian Iron Ore miners are the lowest cost producers, I think they will do well throughout the cycle. They can make very decent returns with iron ore prices much lower than they are now.
When a recession happens, it’s normally the industries with the least steel intensity that are affected the most, and when it comes time to stimulate the economy it’s the steel intensive industries (construction and infrastructure) that get the bulk of the stimulus.
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