Australian (ASX) Stock Market Forum

When will the Iron Ore bubble burst?

When will the Iron Ore bubble burst?

  • 2010

    Votes: 3 12.5%

  • 2011

    Votes: 1 4.2%

  • 2012

    Votes: 1 4.2%

  • 2013

    Votes: 4 16.7%

  • 2014+

    Votes: 15 62.5%
  • Total voters
    24
Jump to new
divs4ever said:
well China might 'make cheap ' now

but i went back and studied post WW2 Germany and Japan , both 'made cheap' for quite a while but as time wore on they made better and better quality stuff ( in slightly lesser quantities ) , i suspect China will follow the same path , less output but higher quality/higher selling price and leave 'the cheap end' to South-East Asia
Click to expand...
It's a very large population in China and they do make some quality products but I'm sure their product target range is large volume low end products otherwise you start to compete with Western world prices.

Surely they have learned from Japan and the past of Taiwan's production of cheap goods other than electrical components. If you price yourself out of the market where are you going to be in 10 years time.
How sustainable would the manufacturing of top tier products be for them?

At this stage in time, I think they need our exports just as much as we need their cheap Chinese appliances, I think their business model is to stay cheap and that's why they want cheap minerals. Russians aren't going to buy their manufactured goods in large proportions, so it's going to fall back onto Western world consumption.
 
TimeISmoney said:
Nothing will change between Mongolia and mainland China, China has been pillaging that area at the same rate for years and they really despise each other. My brother's first wife was a Mongolian whose family forcefully migrated to Hong Kong when it was under the British rule.

They could snuggle up to Russia but unreliable, poorer quality IO, logistical problems, political problems and more game-playing, if it was a good option they would have already done it on a bigger scale and bypassed Australia's IO altogether one would think.

China doesn't have the power that people think it does, ask yourself who is the biggest consumer of their products, the world isn't going to end if the Western world stops buying cheap Chinese junk that ends up in landfills 9 times out of 10. If it's not careful it will end up into another Japan.
Click to expand...
You will not like this @TimeISmoney
It is really great for China that most of the west still thinks like that.
Getting fxxed and asking for more with a superiority arrogance
Just what ?3 decades behind?
And coolies working in the rice fields with conical hats?
Why does 95% of what you find in your Australian shops come from China, including computers, tvs, but also ropes, nails, fertilisers and pesticides, your medecine and antibiotics whatever.
But just cheap garbage products we can do without?
We are absolutely screwed but we are in control ? with our so rare IO.....
Time for a reset of minds and attitude here
 
qldfrog said:
You will not like this @TimeISmoney
It is really great for China that most of the west still thinks like that.
Getting fxxed and asking for more with a superiority arrogance
Just what ?3 decades behind?
And coolies working in the rice fields with conical hats?
Why does 95% of what you find in your Australian shops come from China, including computers, tvs, but also ropes, nails, fertilisers and pesticides, your medecine and antibiotics whatever.
But just cheap garbage products we can do without?
We are absolutely screwed but we are in control ? with our so rare IO.....
Time for a reset of minds and attitude here
Click to expand...
We might see the outcome of this within the next 12 months i think.
Let's see
Sold fmg for a minute profit today
September is a cash month for me
 
TimeISmoney said:
It's a very large population in China and they do make some quality products but I'm sure their product target range is large volume low end products otherwise you start to compete with Western world prices.

Surely they have learned from Japan and the past of Taiwan's production of cheap goods other than electrical components. If you price yourself out of the market where are you going to be in 10 years time.
How sustainable would the manufacturing of top tier products be for them?

At this stage in time, I think they need our exports just as much as we need their cheap Chinese appliances, I think their business model is to stay cheap and that's why they want cheap minerals. Russians aren't going to buy their manufactured goods in large proportions, so it's going to fall back onto Western world consumption.
Click to expand...
We differ but some good points there, where does it fits with io?
 
TimeISmoney said:
It's a very large population in China and they do make some quality products but I'm sure their product target range is large volume low end products otherwise you start to compete with Western world prices.

Surely they have learned from Japan and the past of Taiwan's production of cheap goods other than electrical components. If you price yourself out of the market where are you going to be in 10 years time.
How sustainable would the manufacturing of top tier products be for them?

At this stage in time, I think they need our exports just as much as we need their cheap Chinese appliances, I think their business model is to stay cheap and that's why they want cheap minerals. Russians aren't going to buy their manufactured goods in large proportions, so it's going to fall back onto Western world consumption.
Click to expand...
the Russians ( when rich enough ) were buying the very best before the sanctions ramped up

between ultra-wealthy Indians , Chinese ( residents ) and Russians ( not to mention the Iranians ) there should be enough customers .. and no US dollars needed , so maybe more convenient than cheap

i noticed a video where Samsung thought they could replace China with Vietnam , as a supplier/manufacturer , and sure things were cheaper on paper , but not in volume needed and what could be delivered reliably

now China may become a less reliable supplier for various reasons ( sanctions and export bans ) but they still have a population base , and are ramping up nuclear power plants ( so can increase 'climate change credentials ' , effectively weaponizing climate policies the West tried to impose )

remember a China not buying/selling in US dollars ( or euros ) is suddenly competitive in certain developing nations ( a whole new customer base ) imagine Djibouti as a more modern city than San Francisco , because it deals in yuan and rupees ( and swapped directly to Chinese-made nuclear power-plants and Chinese electric vehicles and batteries )
 
qldfrog said:
You will not like this @TimeISmoney
It is really great for China that most of the west still thinks like that.
Getting fxxed and asking for more with a superiority arrogance
Just what ?3 decades behind?
And coolies working in the rice fields with conical hats?
Why does 95% of what you find in your Australian shops come from China, including computers, tvs, but also ropes, nails, fertilisers and pesticides, your medecine and antibiotics whatever.
But just cheap garbage products we can do without?
We are absolutely screwed but we are in control ? with our so rare IO.....
Time for a reset of minds and attitude here
Click to expand...
Where does their drinking water come from, and where does their food come from? They don't even trust their own baby formula.

Australia has everything to survive on its own, it's just established Australians all want top $$ for doing easy jobs and that is why they need migrants to do all the low paying and dirty jobs. We can manufacture here it's just the cost goes up, like I said before we need them just as much as they need us. They want to grow wealth by manufacturing and we want cheaper goods to spread our income, two different countries in 2 different economic phases.

How did we survive all those other years buying manufactured products from other countries?

qldfrog said:
We differ but some good points there, where does it fits with io?
Click to expand...

They're going to keep on buying IO from us.

The whole world economies are shrinking, you can't expect China to continue buying at top prices and IO is still profitable for many Aussie miners at the lower cost, it's just another cycle. IO is still profitable for major miners down past $80 and it's nowhere near that now.
 
divs4ever said:
well i am one of the 'accumulators ( of iron ore mid-tier players )

now as i see it , construction is trending down , manufacturing is trending down , so only the prospect of wider ( or more ) wars seems to be the driver of rising demand

so IF Trump is elected does Iron Ore tumble ( assuming they believe Trump will wind down military aggression as a policy )
Click to expand...
IMG_2427.png
 
*** Two RAAF F-35A Lightning stealth fighters ***

ROFLMAO

check the maximum air speed , but at least we didn't buy the carrier version

the only 'fast ' bit is the way money disappears into them

and YES Australia is liable to make Germany look rational and sensible

( and i ain't talking about recent gold mining decisions )
 
qldfrog said:
But we are realllllly trying hard to make sure they stop buying from us
Click to expand...
Well, China didn’t stop buying from us in all the other years the Stealth bombers have come here.

The Media alive to beat things up, But the USA and Australia have been conducting Training exercises together for decades, and USA Military of all sorts is regularly moving in and out of Australia.
 
qldfrog said:
Investors but not traders
They UK, USA buy our farms lands and mines..
$300m northern farms bought this week by a Mormon church.
With friends like this....
Click to expand...
And we buy stuff around the world too, every Thursday I buy more Of the USA, UK, China, Japan, Korea, France, Germany etc etc
 

Similar threads

RichKid
Iron Ore Price Hike
Replies
4
Views
6K
noirua
noirua
Top