MB Fund Podcast: The Iron Ore Catastrophe

In today’s investment webinar, MB Fund’s Chief Strategist David Llewellyn Smith, Head of Investments Damien Klassen, and Marketing Officer Jayden Stent dive into The Iron Ore Catastrophe that’s currently unfolding
On the agenda:
Chinese construction hard landing
Iron ore incredibly oversupplied short term
Iron ore ludicrously oversupplied long term
Other commodities
Implications for miners
Implications for Australia

Can’t make it to the live series?  Catch up on the content via Podcasts or our recorded Videos.

Take us on your daily commute! Podcasts are available on iTunes and all major Android Podcast Platforms for Nucleus Investment Insights.



Damien Klassen is Head of Investments at the MacroBusiness Fund, which is powered by Nucleus Wealth.


The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Nucleus Wealth Management is a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.


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    • No – large iron ore mines have heaps of space to store/stockpile material if they have to. Its not like liquid commodities like oil that are constrained by pipelines. Iron ore will never go negative.

    • The Travelling PhantomMEMBER

      How come you have nucleus as your avatar?
      Are you working for them and don’t have membership?

      • Would be smart of MB to mandate your avatar to nucleus wealth unless you subscribe.. you know, every comment is an ad, make up for the freeloading. Besides everybody else is mandating along just fine..

  1. Diogenes the CynicMEMBER

    When I moved back to Australia in 2002 the iron price was US$20…Rio and BHP were making profits.

  2. IronorebustMEMBER

    Still the biggest news impacting Australia right now and mainstream media doing their usual lack of any serious curiosity on the topic – well done to MB on the coverage of this issue.

  3. I bought a wad of FMG a week ago. As usual I end up doing everything opposite to Macrobusiness!

  4. pfh007.comMEMBER

    They don’t muck around in China.

    How to speed up (it cut transport time from 20 days to 3 days) the movement of 200 million tonnes of coal per year in just 5 years. Electric coal trains moving at 120kph!

    Oh look it starts from that famous “ghost city” Ordos.

    When will Australia finish the inland rail?


    “..The Haoji Railway (Chinese: 浩吉铁路; pinyin: Hàojí tiělù), fully known as Kholbolji/Haolebaoji to Ji’an railway[1] (Chinese: 浩勒报吉至吉安铁路; pinyin: Hàolèbàojí zhì Jí’ān tiělù), formerly known as Menghua Railway (West Inner Mongolia to Central China),[2] is a 1,813.5 km (1,127 mi)[1] freight-dedicated railway in China. It runs from Haolebaoji South railway station[1] in Uxin Banner, Ordos City, Inner Mongolia to Ji’an railway station in Ji’an City, Jiangxi.

    It was built to facilitate coal transport from Inner Mongolia and Shanxi to China’s southern provinces at up to 200 million tons a year. The railway is also the first north-south railway in China that is dedicated to coal, and is built to bypass existing coal transport routes that go via coastal cities by ship. The line will reduce transit time from 20 days by sea to just 3 days.[3] The line connects to existing railways at several points to share maintenance facilities.[4] The design speed of the railway is 120 kilometres per hour (75 mph).[1]

    The line was approved in 2014 at a cost of US$27.2 billion, financed by China Railway and several large domestic coal mining companies.[3] The railway was inaugurated on 28 September 2019.[1]..”

    That specialist coal track has some pretty impressive engineering.


  5. great poddy! pretty hard to argue with your reasoning around how IO will end up trending towards $20/T in coming years…

    GOLD, you are ‘not red-hot on gold’, or along those lines… care to elaborate or perhaps dedicate a poddy to diving deeper into gold? cheers

  6. Also you highlighted the disparity with Cu trending north while IO falling through the floor…. what do you see driving the timing of the forthcoming decline in Cu price?

    Anyone have thoughts on DVP? cheers!

  7. any folk here still holding an IO miner? when would be optimal timing to sell out ? I hold GRR. cheers