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Message: Supply-side Management

Supply-side Management

posted on Aug 27, 2008 05:30PM

Further to Whaler's postings, I am wondering how long Xstrata will keep the Dominican operation closed. If they are simply closing it until the price gets better ( a reactive approach to the market), perhaps not long. But if they are closing in order to make the price better ( a proactive approach to making the market), then perhaps they will keep it closed longer.

They may just have figured that it would be better to sell less ore at higher prices than more ore at lower prices. From a long-term point of view, that may be true. Kinda like Nintendo last Christmas with the Wii.....

Cheers,

Bluenoser

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