I currently own too much steel & iron ore stocks (CLF, SID, VALE, PKX, X, also RIO & BHP).
I got caught out by just how quickly the market turned earlier this year.
Cliffs is my largest position by far, which has gone through major changes over the last two years & is now a fully integrated steel producer - specialising in auto steel.
We have just come out of two years of lockdown & major market suppression + supply shortages (e.g. chips). Vehicles will still have to be replaced as their lifespan expires. My hope is, that this is still a setup for a major rally in consumption - albeit for a limited period. (If we end up in a depression, then obviously this won't be the case)
I own VALE, because it offers exposure to China, free from Australian politics & potential beneficiary of any disputes between the two. VALE is primarily an iron ore producer, but it is also the world's largest producer of nickel (essential for batteries & stainless). VALE is shareholder friendly & distributes free cash to them.
China intends to produce more iron ore of its own, but it will NEVER completely replace the vast quantities it has to import (particularly from Australia). This is important and demonstrates the leverage that Australia could be called upon to use in event of future conflicts / disputes with China. (Depending on whether their political class completely sell-out to China - the recent election result was not good).
I currently own too much steel & iron ore stocks (CLF, SID, VALE, PKX, X, also RIO & BHP).
I got caught out by just how quickly the market turned earlier this year.
Cliffs is my largest position by far, which has gone through major changes over the last two years & is now a fully integrated steel producer - specialising in auto steel.
We have just come out of two years of lockdown & major market suppression + supply shortages (e.g. chips). Vehicles will still have to be replaced as their lifespan expires. My hope is, that this is still a setup for a major rally in consumption - albeit for a limited period. (If we end up in a depression, then obviously this won't be the case)
I own VALE, because it offers exposure to China, free from Australian politics & potential beneficiary of any disputes between the two. VALE is primarily an iron ore producer, but it is also the world's largest producer of nickel (essential for batteries & stainless). VALE is shareholder friendly & distributes free cash to them.
China intends to produce more iron ore of its own, but it will NEVER completely replace the vast quantities it has to import (particularly from Australia). This is important and demonstrates the leverage that Australia could be called upon to use in event of future conflicts / disputes with China. (Depending on whether their political class completely sell-out to China - the recent election result was not good).
So write an article about VALE. It might be interesting.