Gubmint: Commodity revenues to plunge on coal

Via the Office of the Chief Economist:   In the June 2020 Resources and Energy Quarterly (REQ) we pointed out that “unlike downturns in previous decades, this downturn was not due to the bursting of excesses built up in the financial system…or in equity markets…. It also differs from the 1970s recessions…which helped contribute to stagflation and


Daily iron ore price update (All China all the time)

Iron ore prices for September 24, 2020: Spot up. Paper down. Empty apartment sales are still fine: World Steel released its latest: World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 156.2 million tonnes (Mt) in August 2020, a 0.6% increase compared to August 2019. Due to the ongoing difficulties presented by


Empty Chair agrees to Morrison gas joke

Via The Fake Left: The draft reads: “Labor supports the responsible development of Australia’s gas reserves, subject to environmental approvals to ensure communities’ concerns are addressed through rigorous science-based processes, including gas from coal seams, shale and tight gas formations.” It says a future Labor government would ensure “gas development is environmentally sustainable, science-based and


Morrison’s gas unplan a joke of truly spectacular proportions

I have absolutely no idea why manufacturing is on board with the new Morrison gas policy. All it wants is cheaper gas and power. Morrison will give it neither. Here it is: Gas will help re‑establish a strong economy as part of the Government’s JobMaker plan, making energy affordable for families and businesses and supporting


Ludicrous Adani to ship coal at huge losses

Via the AFR comes a job well done: Adani Mining chief executive David Boshoff has a clear message for the environmental activists and naysayers who have spent the past decade rallying against the $2 billion Carmichael coal mine in Central Queensland – “it’s happening”. Standing on the edge of the first pit being dug at


UNHCR slams Brazil’s iron ore dam fixes

Via UNHCR today: Extractive industries 15. In January 2019, 270 people died when Vale’s Córrego do Feijão tailing dam in Brumadinho collapsed.13 Most of those killed were Vale workers having lunch in the cafeteria located directly below the tailings dam. The force of the toxic mud dismembered bodies, and shattered what was a bucolic community.


Daily iron ore price update (softness)

Iron ore prices for September 7, 2020: Spot still strong. Paper too. China imported 100.4mt of iron ore in August: I still think we’re roughly at peak imports. Steel exports were buggered, as you’d expect: Empty apartment sales are softening:   To wit: China Evergrande Group kicked off a nationwide sales promotion with its deepest ever


Daily iron ore price update (empty apartments pile up)

Iron ore prices for September 4, 2020: CISA steel output remains outrageous: The key driver, empty apartment sales, remain strong: And it’s not just sales, it’s inventory, at SCMP: China’s biggest developer are likely to step up price discounting this year to clear a growing pile of unsold homes, with authorities sounding another alarm in their


Simandou not such a “Pilbara killer”

Via AFR comes an article titled China’s African iron ore adventure will be filler, not killer: China’s ambition to build an alternative iron ore industry in Africa will push down iron ore prices by a maximum of $US8 ($11) per tonne, hosing down suggestions it will be a “killer” for Australia’s biggest export industry. …SMB-Winning


Should Aussie miners be selling iron ore in yuan?

Via SCMP: Iron ore miners‘ and steel producers’ increasing use of the Chinese yuan will increase its internationalisation, reduce China’s vulnerability to any possible US financial sanctions, and help the domestic economy in line with the new “dual circulation” strategy. By using the yuan rather than the US dollar to price iron ore, this will


Aussie households slowly kill gas cartel with solar

The market will respond. With the Australian Government’s protected gas cartel driving power prices mad from 2015 guess what? At Bloomie: Australians’ fervent embrace of rooftop solar is forcing the grid to become more flexible. The shift has carved out daytime demand for traditional generation and caused bigger fluctuations in electricity use across the day,