Daily iron ore price (rocket!)

Yesterday Rio Tinto (RIO) announced its plans to cut jobs all over, excluding their iron division (BHP was not so kind earlier in the day) but you wouldn’t know it from action in the iron ore price, which, to put it mildly, blasted off:

Here are the charts:

And steel:

If there is another country on earth that has this great a volatility in its it primary export and no fiscal mechanisms to counter-balance it, I don’t know of it. Chile, Norway and Saudi Arabia may have greater singular reliance’s but they’ve also got ways to contain them.

We, on the other hand, ride the wild ore! $120 retest imminent.

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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.