The ferrous complex fell on March 31, 2021 as steel production cuts took their toll. Spot iron ore was down, steel was down and paper was down:
China’s steel PMI is still sitting in recent ranges
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However, production fell sharply, probably as Tangshan curbs limit output. Still, nothing to worry about here yet.
In news, Big Clive is enjoying a windfall:
A Supreme Court judgment has paved the way for giant Chinese conglomerate CITIC Limited to mine an additional 1 billion tonnes of iron ore in Western Australia through a deal with Clive Palmer.
CITIC will likely develop a new mine to complement its existing magnetite and port operations on the WA coast south of Port Hedland, in another massive royalties windfall for Mr Palmer.
He is set to pocket $US142 million ($186.9 million) up front – a sum described by CITIC lawyers as a “mere bagatelle” – and as much as $250 million a year in royalties once the conglomerate starts eating into the billion-tonne rights.
I hope he has a hedge for when the Taiwan war starts and the shipments stop.