Big Iron pins hopes to China bubble

Big Iron is back, pinning its hopes to China’s suddenly gob-smacking property bubble (pun intended) with BHP 1.2%, RIO 1.5% and FMG 2.1% and again pushing $5:

Dalian has opened soft after last night’s gains and I really can’t see the upside here. We’re still headed into seasonal weakness, port inventories are destocking, coking coal is pressuring steel margins and its price is falling, further Chinese prudential tightening is imminent and infrastructure is still slowing. Prices have another $10 drop ahead at least in my view.

Big Gas is a little more sensible as WPL continues to lose its recent luster -1.5%, OSH is -0.2%, ORG -1.6% at new correction lows and STO -1.1%:

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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.