Big iron rocked as China turns the currency screw

Wednesday, 12 August 2015

Big iron has been rocked by the Chinese devaluation today with BHP down -4%, RIO down -5.5% and FMG down -7.5%. The falling yuan is bad in two ways for miners. Seaborne dirt gets more expensive versus local dirt and a rising US dollar puts more downwards pressure on prices:

Idiocy spreads are suddenly shunting closed:

Juniors are unchanged:

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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.