As I've mentioned in other recent pieces on Investopedia, these are
tough times for commodity producers as the incremental Chinese demand
that pushed prices so far for so long has faded. With that, demand for
steel inputs in particular (met coal and iron ore) has come into much
better balance with supply and prices have weakened considerably.
Although high-cost iron ore suppliers are looking at some tough times in the coming years, Vale's (Nasdaq:VALE)
low-cost assets should serve the company well. Investors don't really
want anything to do with this giant iron miner today, but patient
investors who can take the risk of conditions getting even worse in the
short run may like the long-term potential offered by this company.
Please continue to the full article:
http://www.investopedia.com/stock-analysis/062513/down-vale-vale-rio-bhp-fcx.aspx
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