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Hope for Australia’s major iron and gas producers is palpable today as underlying prices collapse at record speeds but the equities are falling like strolling gentlemen, deluded that the future will be better. BHP is down -2, RIO -1.6% and FMG a laughable -0.5% as its margin per tonne collapses to just 60 cents. If it’s a $6 billion firm then I’m Elvis Presley. Dalian May is flat at this stage:
Big gas is also delusional with oil down -4.3% most falls are minor with WPL down -1.76, OSH -2.4, STO flat, ORG -2.4% and LNG -1%:
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Hoping for an OPEC bailout, I guess.
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.