Commodities

by Chris Becker In the wake of the almost finalised Iranian/US nuclear deal – opposed only by some wingnut Republican senators – there have been two recent developments in the Middle East that could shake up the LNG global pricing and supply complex, and in particular US shale gas.

By Leith van Onselen Following the CBA last month pulling out of its role as financial adviser, Adani’s controversial $16 billion Carmichael thermal coal mine has been dealt another blow, with one of its two big external customers – Korean giant LG – confirming that it will not purchase coal from the project.

by Chris Becker I don’t know where to begin when a political leader makes statements like this.

by Chris Becker Earlier this year as we watched the decline in oil prices, from over $100USD to less than $45USD per barrel for WTI crude, I cautioned that oil has a history of being extremely volatile on the up and downside and investors should not discount a 20-50% from that low.

Given the size of last night’s moves in the US and commodity markets, big iron ore and gas is behaving with veritable sobriety undoing only a small portion of recent damage.

Here are the iron ore charts for August 27, 2015: Tianjin benchmark firmed a little to $53.30.

Big iron is kind of off the canvas today with RIO down marginally and BHP as well as FMG up 1%: Idiocy spreads are still closing but it’s slowed right down.

A number of readers have asked me at various times whether now, or now, or now, is the time to buy beaten down mining and LNG stocks.

Here are the iron ore price charts for August 26, 2015:      Tianjin benchmark fell 30 cents to $53.10.

Anyone that’s in the know understands that BHP is the round boy of the resources sector.

Oil managed a modest 2% rebound last night to $43.25 but the chart says it all:   Whether we can stick it here I doubt but let’s wait and see.

Here are the iron ore chart for August 25, 2015:   Qingdao firmed a little but Tianjin spot did not at $53.40.

By Leith van Onselen You can’t keep a dumb idea down.

Find below the iron ore charts for August 24, 2015: Qingdao iron ore price tumbled 5.03%.

From Bloomie: “The logic that you keep expanding just because you can squeeze an extra ton out of your machines, applies well to mining juniors,” Chairman Andrew Forrest said in a commentary on Monday as the company reported a slump in full-year profit.

Big iron is being destroyed now.

The following will be very familiar to readers given it is exactly how MB described the commodity super cycle death spiral a year ago.

It had to come.

From FMG: That’s a miss of 4-5% on the top line and 25% on NPAT versus expectations.