Iron ore miners tumble

Tuesday 29 April 2014

Dalian and rebar futures have both stabilised in China this afternoon but nothing can save equities today. As I speak, RIO is down 2%:

And FMG 4%:

Juniors are also down sharply. The two majors are approaching their March lows but have a long way yet to correct. Their out-performance versus the iron ore price for the past three months has made them ludicrously vulnerable. Behold the gap!

I’m not sure the iron ore price is about to crack lower but I expect the gap to close in the second half anyway.

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.