BTW I completely agree with your thinking on the recent Aussie dollar recovery and company value in your post. Something else to note, cheap fuel prices make bunker fuel cheap and iron ore exports from Western Australia cheaper in the global market and China.
China's internal iron ore production capacity has shrunk a bit with demand waning and prices so the rebound in iron ore prices may keep the bigs like BHP motivated to keep their foot down on the gas when it comes to tonnage and continued development/production volumes. That way they can squeeze higher cost producers (by keeping prices down longer) so as things get better down the road they can more quickly pick up market share if China itself is not quick to ramp production back up (iron ore). That's a slippery game to play as a business though since U would be hurting up front profitability using ramped low cost production as leverage to win market share eventually.
Of course the higher the Aussie goes the more that balances the benefit out so maybe a bit more of a transitory thing than a general market shift. And as we've seen with OPEC production to squeeze out higher cost rivals, lots of things can shift and change that aren't necessarily obvious up front.
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
