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kumba

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juda
Occasional Contributor
why is this share going up
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14 REPLIES 14
theyoungster
Super Contributor
because you shorted it!!lol
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KJR
Frequent Contributor
but at this rate, how how can it go before a correction
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232926
Frequent Contributor
Because they said they will not supply Arcellor at cost +3.
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Ninja
Super Contributor
Reversed off a major double top today and very O/B...if you are in long you may see some downside on the way.
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Not applicable
I dont know why its going up.. sorry
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kwagga
Super Contributor
Kumba Iron ore is going to stop the supply of cheap iron ore to Mittal steel. With contract renewal Mittal will have to pay at lot more for their iron ore, meaning Kumba will show more profit per tonnage sold to Mittal.
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Werner_1
Super Contributor
I think if ACL accepts the new terms and pays market value for the iron ore, it could give KIO a huge boost, maybe very good earnings for them coming... ACL however might be negatively effected - i would short ACL and long KIO in that case, but dont know as i dont trade short term and havent looked at any of these companies recently... SO DONT TAKE MY ADVISE ITS JUST AN IDEA!
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barry_1
Super Contributor
These are not tu'penny ha'penny shares.This situation should never have been allowed to happen as it can harm South Africa,the government should have been called in at an early stage ,something like Eskom and a deal hamered out.It is all very well to use legal loopholes to try and outsmart each other.I think there will be a loss of confinence in both ACL and KIO an will surely have an effect upon ther shares in the near term taking their prices down.
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asylum
Super Contributor
i agree with you barry cant see mittal going up if they have to pay current prices for iron ore, as iron ore is a huge input cost for the manufacture of steel.
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asylum
Super Contributor
Costs for ArcelorMittal's South African steel unit could rise by over $250 million (R1.925 billion) a year after a key iron ore supplier said it stop selling its products at a discount, analysts said on Monday. Kumba Iron Ore, which supplies ArcelorMittal South Africa with around two thirds of its iron ore annually, said on Friday it wants to sell the steel-making ingredient at market rates as from March 1. ArcelorMittal South Africa said it has enough stockpiles of the raw material to last two months, according to media reports.
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john_1
Super Contributor
ACL has been ripping everybody off for years..and have been doing it while this antiquated deal is stil in place..its about time this happened.
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barry_1
Super Contributor
I received a couple of e-mails telling me that i must not encourage government interference in "private enterprise !"....Well to set the record straight.ACL(Mittal formerly Iscor) was built by the government with our tax payer s money so that we would always have a supply of steel at reasonable prices.The government is STILL the second largest share owner with all the pieces coming to just under 25% of ACL.Alec Irwin who crafted the original deal with Anglo believed that you could not seperate Iron ore,Coal,Manganese and Steel. Now this is not to say that the price should not be ajusted upwards from time to time ,which does not seem to have happened....For Kumba to ask the overseas landing rate of iron ore is on the other hand is unreasonable.I see forumites now want to grind Mittal,but in the end it might backfire as if steel prices climb any higher,we will all suffer as construction which is just starting to move again would probably have to be curtailed.
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Not applicable
Barry, I don't think that ACL was translating those rock bottom Iron Ore input costs into savings for hte SA economy - they were paying fat dividends to their overseas shareholder. Did ACL really discount the steel price locally? I understood from various news articles that they are a bit mercenary in their pricing
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barry_1
Super Contributor
Well you are right about Mittal,they have ignored court decisions against them and act generally in a gung ho way.On another note its rather priceless that they are accused of ignoring BEE as they are partners of the government that is supposed to enforce just that....Still I do think they should be reigned in and since the government is so involved an equitable solution found.Time for Anglo,Markus and minister of mines,who ever that may be and Mittal to get together and hammer out a solution.I hear that Kumba is fiercly independent,but Anglo is the majority shareholder so time to end the crisis and a crisis it is in which we will all eventually suffer.
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