Daily iron ore update (restock continues)

The charts:

Pretty typical year end retock now. I can’t see prices taking off but relatively firm conditions seem likely now through January, barring an accident.

News is more CITIC losses:

China’s Citic faces a fresh set of challenges at its $16bn Sino Iron mine in the Pilbara as the company looks to a rejig of its massive processing plant to cope with a degrading ore body.

Built at enormous cost, Sino Iron has only had a single profitable period, booking a slight cash profit in the first half of the year amid a surging iron ore price.

But despite building up substantial losses at the project, Citic is considering fresh capital spending to allow the operation to cope with variations in the low-grade ore it mines as its open pit gets deeper.

I guess that scotches any idea that the dud plant will ever close.

Got to save face!

David Llewellyn-Smith
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