Fortescue’s dodgy dirt problem

Friday 21 October 2016

Reuters is reporting some strange comments from our Nev:

Skyrocketing prices for coal used in steelmaking could deliver higher profits to Australian iron ore miner Fortescue Metals Group, its chief executive officer said on Thursday.

Prices for coking coal have more than doubled this year to above $230 a tonne, while iron ore, the other essential raw material required by steel producers, has risen by less than 40 percent to around $58 a tonne. The unexpected surge in coking and thermal coal prices is largely the result of curbs at Chinese collieries.

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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.