Big iron burns as gas finds favour

Big iron continues to melt down today despite the lunacy sparked by Wall St. BHP is falt, RIO is down marginally and FMG is down -1%:

Dalian has opened immediately under pressure down one point to 356. May is now pricing with a $40 handle.

Meanwhile, big gas is giving off a slightly less repulsive stink as oil rebounded. WPL is up 1.3%, OSH is up a bit, STO is up 2.3% but ORG is down -1% as its retail book build came in at $5.35 well below its current price of $5.62:

I’ve added LNG LTD, that marvelous upstart that dreamed of its Magnolia project in the US but finds itself rather up against it now. Here’s the longer term chart:

It was fun while it lasted. Given the Brent rally was built on absolutely nothing I can’t see much upside to the rally.

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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.