Funds flee commodities

Goldman Sachs was the great commodity cheerleader of this cycle. It has gone quiet of late perhaps because it has a lot of angry clients. Certainly, the recent data suggest a reversal of the great commodity super cycle trade that has unwound so spectacularly in the past few months. RBC has more: While major commodity


Daily iron ore price update (down she goes)

The ferrous  complex broke on August 3, 2022: The dream is over. We’re just waiting for the market to wake up: China’s steel industry is entering a precarious new era as a worsening property crisis imperils demand and Beijing’s construction-led growth model looks increasingly untenable. Almost a third of China’s steel mills could go into


RBA commodity price index plunges

The Reserve Bank of Australia’s (RBA) index of commodity prices dived 8.5% in June in SDR (currency-weighted) terms, which follows June’s 2.8% drop: Over the July quarter commodity prices fell 13.8% over the quarter but were 14.1% higher year-on-year in SDR terms. As explained by the RBA: The rural, non-rural and base metals sub-indices all


Daily iron ore price update (PMI hellfire)

The ferrous complex flamed out on August 1, 2022: For damn good reason. Check out the latest Chinese steel PMI: Judging from the steel industry PMI surveyed and released by the China Federation of Steel and Logistics Professional Committee, July 2022 is 33.0%, down 3.2 percentage points from the previous month, and the operation of


Daily iron ore price update (Dalian rip)

The ferrous complex was strong on Friday 22nd of July: Dalian futures went berserk on Friday night for this: A State Council meeting chaired by Premier Li Keqiang Thursday called on local governments to ensure construction and supply chains won’t be interrupted and that more job opportunities be provided to migrant workers, state broadcaster CCTV


China abandons growth target as mortgage strike runs wild

It’s all over for 5.5% growth: China will keep its economic policy vigorous, targeted, reasonable and appropriate and will not introduce super stimulus measures and monetary easing to achieve “excessively higher” growth target, said Chinese Premier Li Keqiang on Wednesday. The country will maintain consistence of the macro economic policy and continue to help market


RIO warns

So predictable. All commodity cycles work this way: Rio in effect conceded on Friday that the cost of exporting iron ore from Western Australia this year would be about 5 per cent higher than previously expected. The rising cost was implied when Rio retained its promise to keep unit costs between $US19.50 and $US21 per


Daily iron ore price update (annihilation)

The ferrous complex was annihilated on July 14, 2022: The steel crash is leading us lower. Here is September Shanghai rebar: The Chinese property crash is intensifying as it sweeps toward banks. Steel demand is directly in its path. As the broader commodity mania implodes under Fed pressure, the bulk commodities are freed to fall