Iron ore charts for August 2, 2016:
Tianjin benchmark edged up 0.3 per cent to $60.70. Paper flamed out overnight. Rebar average followed through with solid gains yesterday so the rally ain’t dead yet. RIO and BHP were thumped in London regardless. After falls here yesterday it appears that for now equities have had enough of Banana Man.
In news, RIO has approved Silvergrass:
Rio Tinto has finally taken the plunge on the Silvergrass iron ore expansion in Western Australia, with the company’s board approving $US338 million worth of works to complete the project on Tuesday night.
The approval raises the prospect that Rio may finally achieve its long-held goal of shipping 360 million tonnes per year from WA, given Silvergrass was needed for mine production to fill the capacity that already exists in the miner’s port and rail infrastructure.
It’s also about replacing older mines. I do not expect RIO to charge toward its 360 goal until Chinese demand softens again and the destruction of competitors become easier.
Find below as well a Bloomie video on progress at Samarco:
Not returning in a hurry.
