Commodities

17

Chinese banks reject Adani

From the ABC: Adani’s controversial Carmichael mine has been dealt another blow after one of China’s major banks said it would not bankroll the project. Industrial & Commercial Bank of China (ICBC) issued a statement to clarify it had no intention of funding Adani’s proposed mine in Queensland. “ICBC has not been, and does not intend to

13

Gas cartel gives tax-payers a fearful rogering

You don’t say: Energy giant ExxonMobil​ has not paid a cent in corporate income tax in Australia in at least two years, despite reaping more than $18 billion from the nation’s natural resources, according to three of the company’s workplace unions. Tax campaigners accuse the company of cashing in on Australia’s soaring gas prices, but avoiding paying tax on its

4

Daily iron ore price update (Bitiron)

Iron ore price charts for December 1, 2017: Tianjin benchmark up $1.50 t0 $69.30.  Paper to the moon. Steel stalled. Anyone for some Bitiron? Once iron ore and coking coal were very solid supply and demand markets. With the advent of short term pricing and Chinese futures they have become as volatile as Bitcoin and virtually unreadable

14

Fortescue to upgrade iron ore

Interesting from the AFR: Former Helloworld chief executive Elizabeth Gaines will replace Nev Power at the helm of Fortescue Metals Group, and looks set to preside over a period of strategic change at the iron ore miner. Upon announcing Ms Gaines elevation to the position of chief executive, Fortescue chairman and major shareholder Andrew Forrest

1

Daily iron ore price update (stand back)

Iron ore price charts for November 29, 2017: Tianjin benchmark rose 20 cents to $67.20. Banana Man is loose. Stand back. Texture from Reuters: Steel mills across northern China were ordered to curb sintering output by up to half from this month through March. Sintering, where iron ore is processed ahead of steelmaking, causes heavy

1

What’s coming beyond China’s Winter shutdowns?

Via UBS’s Wang Tao: Notable progress achieved in excess capacity reduction China officially cut 65 million and 290 million tons of steel and coal capacities in 2016, and will likely exceed its official targets again this year, of 50 million and 150 million tons respectively. Aside from capacity reductions, coal production restrictions, illegal steel capacity

2

Goldman turns bearish iron ore

Via Bloomie comes Goldman: The raw material may fall to $60 a ton in three months, $55 in six and $50 in 12, according to the New York-based bank’s projections… The forecast for lower prices “is mainly because we see steel production in China peaking and should fall going forward and iron ore supply is

13

Minerals Council sniffs winds of change

And pulls back from attacks on GetUp, Shut the Gate and other inconvenient charitable organisations, via The Guardian: Australia’s mining industry has stepped back from its hard line on trying to limit the charity sector’s lobbying on energy and climate change issues. The Minerals Council of Australia says it does not support policies requiring environmental

3

Daily iron ore price update (“no one wants” FMG ore)

Iron ore price charts for November 27, 2017: Tianjin benchmark rose 10 cents to $67.80. Paper flamed out. Steel is strong. Until it goes, inputs stay strong. Via Platts: Australian miner Fortescue Metals Group has increased the contract discount for 58.3%-Fe Fortescue Blend iron ore fines for cargoes loading in December at 29% discount against

151

Ever wondered what colonisation felt like? Now you know

The Do-nothing Government has released a new Foreign Policy White Paper. Via the AFR: The Turnbull government is warning that China’s increasing belligerence over territorial disputes and potential clash over democratic values calls for stronger efforts to maintain American presence in Asia and to bolster ties with neighbouring democracies as a check against Beijing’s rise. Without US political, economic and security

77

China backs Adani, using Chinese materials and workers

Via the ABC: The Adani Group is close to securing finance for its controversial coal mine and railway project in outback Queensland, with an announcement expected in coming weeks that Chinese state-owned enterprises, banks, and export credit agencies are backing the venture. Australian taxpayers may be let off the hook under the deal, which could

7

SA seeks block on Santos bid

Quite rightly: US player Harbour Energy’s ambitions for an $11 billion takeover of Santos have run immediately into political hot water, as South Australian Treasurer Tom Koutsantonis signalled the state would seek to prevent the oil and gas producer falling into foreign hands. “The state government would be very concerned by any foreign takeover of Santos,”

7

Block the Santos takeover

Via the AFR: Big American oil is preparing to make a $11 billion all-cash takeover offer for Santos as the next step in play for regional and global relevance in rapidly reforming liquid natural gas markets. A consortium of powerful global energy investors, led by a former executive director of Royal Dutch Shell, Linda Cook,

0

Daily iron ore price update (evidence)

Iron ore price charts for November 15, 2017: Tianjin spot fell $1.60 to $61.20. Paper was stable overnight. Steel got whacked yesterday. CISA late October output fell 1.6% to 1.79mt per day. The decline is now showing evidence of either shutdowns or easing demand. Nothing is discounted here yet. If the market is going to

7

Adani brawl intensifies

Via The Guardian: Profits of Adani Enterprises – the company in Adani Group’s complex structure that owns the proposed Carmichael coalmine – have collapsed almost 50% year-on-year, according to a half-yearly report released this week which does not mention the mine. The results further show the company is in financial distress, according to Tim Buckley from the Institute of

1

Global markets choke on China

DXY was hammered last night: AUD too against EUR, it held against the plummeting USD: Gold was firm: Brent was whacked by a dovish IEA report: Base metals were hit: Big miners flogged: EM stocks looks worrying like forming a double top: US and EM junk continues to warn: The US curve flattened again: The