Iron ore prices for June 9, 2020:
Not much change in things. Chinese data is still crap, excepting empty apartments:
Brazil’s virus data is on the weekend but is still rising week over week:
Up remains the path of least resistance for iron ore, notwithstanding short term seasonal headwinds.
Longer-term it’s the opposite, via Reuters:
Guinea on Tuesday signed an agreement with a consortium for the development of its giant Simandou iron ore reserve, another step towards the realisation of a project which it hopes will bring a $15 billion windfall over the 25-year lifespan.
The deal includes the construction of a 650 km railway from Guinea’s mountainous forest region to the coast, and a deep sea water port, which will unlock the development of blocks 1 and 2 of the rich Simandou iron reserve.
We await financing and timeline. Both seem likely.
I still think that when it does come, combined with going ex-growth, it will more or less destroy FMG:
Dig dirt while the sun shines.
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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