Iron ore price


MSM plasters lippy on iron ore mining pig

The Australian press is falling over itself to defend doomed miners. From Bartho: A price below $US40 a tonne isn’t inconceivable – it would represent a return to the long-term trends that long-established producers like Rio and BHP used to predicate their investment on. At those levels, only Rio and BHP would generate meaningful profits


Goldman: Metals crash not over, China weakness “imminent”

From Goldman: Metals prices have declined by 12%-17% since late October. Over this period, China’s economic data for October has disappointed, the US dollar has strengthened on a trade weighted basis, and the broader commodity complex has moved lower, including most notably, energy prices. What has also occurred since late October has been an eye


The commodity truth that Australia forgot

There is one iron law in the commodities business (pun intended). Only one. And it is this: the lowest marginal cost of production sets the price. What that means in practice is that in the commodities business over time there is no competitive advantage other than the cost of production. It is dirt. There is no


Andy Xie: Iron ore miners going to bust

From Bloomie: Iron ore bear Andy Xie is sticking to his guns. …“The steel industry is reaching a critical point,” said Xie, a former Asia-Pacific chief economist at Morgan Stanley. “They’ll have to cut production,” said Xie, who forecast in February — when iron ore was in the $60s — that prices would drop below $40 this


World steel output declines steepen

From the World Steel Association: World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 134 million tonnes (Mt) in October 2015, a -3.1% decrease compared to October 2014. China’s crude steel production for October 2015 was 66.1 Mt, down by -3.1% compared to October 2014. Japan produced 9.0


Daily iron ore price update (smashed)

Here are the iron ore charts for November 19, 2015: Tianjin benchmark fell 1.84% to $45.05. Paper is burning though Dalian recovered some of yesterday’s steep losses overnight. Rebar is a train wreck. Texture from Bloomberg: “Steelmakers are going through a very difficult time and a number of them have halted output,” Dang Man, an


CLSA: Fortescue buggered

From The Australian: Under current assumptions, FMG will have a funding gap of about $2.5-$3 billion on of its required principal payments, so while debt will likely be rolled over, about 90% of cashflow between ’16-’25 will end up paying interest, and dividends will likely therefore be very modest, CLSA analyst Kaan Pekker says. “In order