Here are the iron ore charts for April 7, 2014:
So, now we’re seeing some momentum in paper and physical prices (sorry, some prices not updating this morning). I have no idea why mills are chasing prices higher but they are so don’t argue.
The Baltic Dry capesize fell a little yesterday and it remains at levels synonymous will reasonable demand but not restocking:
One reason for the buying may still be possible Port Hedland industrial action:
The risk of strikes at Port Hedland has escalated, after two more unions representing tugboat workers sought permission to ballot workers possibly leading to to industrial action.
Barely a week after the Maritime Union representing tug deckhands won permission from the Fair Work Commission to ballot workers over possible industrial action, the unions representing the two other types of workers on the tugboats made similar applications to the commission.
The development means engineers on the tugboats (represented by the Australian Institute of Marine and Power Engineers) and the tugboat Masters (the Australian Maritime Officers Union) are now also in dispute over a new workplace deal with the company with that operates the tugs; Teekay Shipping Australia.
At this stage, the iron ore price rally is far ahead of any fundamentals but that’s not unusual for the miracle commodity. We appear to be in a moderate restocking episode driven by a modest rise in Chinese confidence and supply-side risk.
