Iron ore miners slammed as futures tank
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Yesterday’s iron ore plunge is causing some serious damage to share prices again today. Fortescue is down 4% to a 2014 low and is swiftly approaching terminal support around $3. The bizarre calm around RIO and BHP continues with both up marginally. I continue to think that both will also capitulate at some point, especially the former. It’s profits are also being destroyed even if it will be alright in the long run.
Here are the comparative performance charts:
The idiocy spreads are still widening. Although FMG will close in the next few days, the majors are headed back to record wides:
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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.
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