COLUMN-Have rumours of the iron ore market's death been greatly exaggerated? Andy Home
(The opinions expressed here are those of the author, a columnist for Reuters.)
By Andy Home
LONDON, Sept 1 (Reuters) - Rumours of the death of the iron ore market appear to have been greatly exaggerated.
Consider the case of Australia's Atlas Iron, which has just released its financial results for the year to June 2016.
The junior producer is still struggling, witness a net loss of A$159 million ($119.68 million), but that's a massive improvement from the $1,378 million loss booked the previous year.
Indeed, it is something of a miracle that Atlas is still operating at all. At one stage last year, the company had idled all three of its mines in response to the collapse in the iron ore price .IO62-CNI=SI to below $50 per tonne.
But fast forward a year and after a complete operational and financial overhaul, Atlas is still in the business of producing iron ore.
The same survival story is playing out globally.
The spectrum of countries supplying iron ore to China, the world's biggest buyer, contracted sharply last year but is widening again this year. Continuación...