Desperate Fortescue breaks with iron ore cartel

Monday, 28 May 2018

Via FMG:

Amusing stuff. Desperate even. Given Chinese imports will be falling by then and Vale will still be pouring out its S11D expansion, this is a clear break by FMG from the tacit agreement by the majors to not expand supply.

The irony is that 30mt is material for iron ore prices meaning that it will weigh on prices for lower quality ore all the more. FMG is robbing Peter to pay Paul. Share are down below $4.50 again and no wonder.

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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.