Australian banks Australian LNG Australian Shares Gold Iron ore price

The Big Iron short presents itself

David Llewellyn-Smith

Wednesday, 5 April 2017

Dalian is open and soaring. Coking coal is up 8% and iron ore 1.0%:

Big Iron is up strongly too with the majors up 2.5%, FMG 3.5% and WHC adding to yesterday’s big gains:

For mine, this rally is a great short entry point. The Debbie delays will be short and only serve to boost alternative market shares to Aussie coal producers. To win it back they’ll have to go in hard as production resumes. As coke prices fall in a few weeks or more, the Chinese port glut of sub-standard ore will be released into production.

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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.