Yesterday Rio Tinto (RIO) announced its plans to cut jobs all over, excluding their iron division (BHP was not so kind earlier in the day) but you wouldn’t know it from action in the iron ore price, which, to put it mildly, blasted off:
Here are the charts:
If there is another country on earth that has this great a volatility in its it primary export and no fiscal mechanisms to counter-balance it, I don’t know of it. Chile, Norway and Saudi Arabia may have greater singular reliance’s but they’ve also got ways to contain them.
We, on the other hand, ride the wild ore! $120 retest imminent.