From ATO today:
There are a few important observations to make here:
- the high discounts and shipping costs add roughly $12 per tonne to Australia’s net iron ore price. The Budget has that at $55FOB when in reality it is more like $67CFR;
- ATO’s move to beneficiate ore will become an increasing trend across miners that will erode the big discounts but also drag down the 62% price (without being large enough to eradicate it).
