Iron ore equity inflates!

Tuesday, 5 May 2015

And why not? The major’s are cutting production, there are green shoots in China and the US dollar is falling. The super cycle is back!

Except that this is fantasy and what is actually happening is a short term steel mill restock amid a giant and growing iron ore glut.

But it’s the former drivel still holding sway today. BHP and RIO are flat today after good afternoons yesterday. FMG is up 3% as its dead cat is still twirling. To the indexes:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.