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Wowsers. Here’s one reason why the iron ore price is cratering. Supply and lot’s of it. Port Hedland puked a record 44.5mt of dirt into the sea in May, 38.2mt of which went China, also a record:
Korean exports have really come off the boil suggesting that Roy Hill (which has large Korean contracts) will have to dump ever more tonnages on China as well, an incremental negative for prices:
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The volume boost is no surprise at all given the Q1 weakness was always going to give way to catch up. So, more ahead into the EOFY.
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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.
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