Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Big iron hiccups as Banana Man focuses on fruit

Friday, 29 July 2016

The Big Iron bubble is off the boil today as Dalian has lost last night’s gains this morning. BHP is -0.8%, RIO -1.4% and FMG is off a sharper -3%:

There’s good reason for FMG to fall. It’s 58% iron ore has barely budged during this rally and the discount to spot is now -19.4%:

Nobody cares of course, until they do.

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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.