The discount of 58%fe has widened and this matters when you think about the average export price for Australian iron ore..
In May, the average spot price for iron ore less the cost of freight to China fell 0.7% to US$58/t, as good as flat in the month. By comparison the ABS reported a 5.2% fall in the fob export price of iron ore to US$52/t.
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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.
