Texture from the AFR:
Australia supplied a record 74 per cent of China’s imported iron ore in June, according to trade figures, almost double the monthly average from 10 years ago.
As the world’s largest manufacturer and second biggest economy, China is also reliant on Australian coal and uranium to keep the lights on and its factories running, as the Communist Party seeks to maintain two decades of rising prosperity.
“China is in some respects more dependent on us than we are on them,” said Ross Babbage, a former analyst at Australia’s Office of National Assessments, the nation’s peak intelligence agency.
Obviously that was temporary but the point is well made. We supply more CPC guns, bullets and missiles than anybody else.
To the charts:
Spot dead cat bounced. Paper closed overnight before the carnage in markets. Steel did not update. Port Hedland shipments pulled back sharply in July to 41mt on one less day and the Brazilian rebound.
No change to outlook. Down.