Commodities

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RBA on steel and iron ore

This morning’s SoMP may have been a dead bore but there was one interesting breakout box about China’s steel market and iron ore demand. It keeps up the pretense of endless Chinese demand (which we can take with a grain of salt) but some of the details are useful. Enjoy. rba steel

2

Daily iron ore price update

Find above today’s ore price complex table. In wider news, Reuters offered a good snap shot of the dynamics in the market overnight: “Most takers of cargoes are traders who are trying to keep the market up, expecting some good news for the steel sector to come out from the China congress,” said a Shanghai-based iron ore trader.

21

Oakajee bites the dust

From the AFR: The future of the $6 billion Oakajee Port and Rail project in Western Australia has been cast into further doubt, with Japanese owner Mitsubishi to freeze spending and pare back its workforce on the troubled venture. Mitsubishi’s efforts to reinvigorate the project have been stymied by weakening iron ore prices, ongoing global

3

Daily iron ore price update

Here is yesterday’s iron ore price. It’s a war between the 12m swap, which rightly does not want to budge and the spot price, which just as rightly wants to rise. Here’s where we’re up to on the spread between them: I’m still thinking that yesterday’s Indian news will be enough to push spot higher

1

Daily iron ore price update

Little change to today’s iron ore complex but our spread is now plus $10 between spot and 12m swaps. One is going to give shortly. In news, Mitsui sees a $100 price floor in the year ahead: “I think we saw the floor of it in the second quarter” ending Sept. 30, Iijima of Mitsui &

13

All together now: China forever!

Find below the new “Aussie Mine” report from PWC, an annual assessment of the landscape and prospects for the mid-tier Australian miners. I don’t recommend reading this for any other reason than the good laugh available in the assessment of China from pages 3 to 7. If ever there was a report that captured the

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Daily ore price update

Here is today’s iron ore chart: Definitely looks like the spot market wants to test the $120 ceiling. 12 month swaps aren’t co-operating and the contango is gone but the spread has often been much wider than this so that may not hold spot back: As I’ve said, though, anything over $120 now has highly

2

Daily iron ore price update

All quiet on the Westoren front today. Not much else to read either beyond a bit bullish blather from UBS: Iron ore will probably advance this quarter to levels last seen in July as steelmakers in China, the biggest buyer, rebuild inventories on speculation that the country’s pace of economic growth will pick up, said

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Daily iron ore price update

Here’s your overnight ore complex action: Looks like the bulks got their Chinese data bounce one day early. In other news, I mentioned this yesterday but it’s worth repeating. Marius Kloppers has declared the end of the boom: In the 10 years or so that have passed since China first came to the fore as

10

Cast iron drivel

Business Spectator’s Ben Potter has a fast and loose take on iron ore today: Third quarter production reports have catapulted the big miners higher as they met or exceeded analyst expectations. This, combined with strong offshore leads and an investment community that is fast becoming less bearish on China provide a near perfect storm for