Commodities

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Daily iron ore price update (dead cat bounce)

Iron ore price charts for November 1, 2017: Tianjin benchmark rose 10 cents to $58.50. Paper dead cat bounced overnight, especially coking coal. Steel futures firmed. I do yet think we’re at the bottom. Some comments from The Australian: Chinese delegates at the International Mining and Resources Conference in Melbourne reiterated ­medium-term forecasts of about

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Sinking islanders condemn Adani

Via The Guardian: Pacific Islanders whose homes face eradication by rising sea levels have called on Australia to not fund the Adani Carmichael coalmine, as a new report reveals the worsening impact of climate change across Oceania. Residents of the endangered islands have described their forced displacement as like “having your heart ripped out of your

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God condemns Adani

Not even God wants the Adani mine, it seems: It may have the Turnbull and Palaszczuk governments firmly in its corner, but the Adani super-mine is facing a formidable new opponent: the Christian faith. The Catholic and Anglican bishops of Townsville have issued a joint statement to their followers criticising “projected mega-mining developments across Queensland, especially the Galilee Basin”, and

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More record highs for global stocks as ASX black hole expands

DXY roared Friday night and the future is up: AUD crashed but rebounded on news that Jerome Powell is now Fed favourite. EUR is weak as Catalonia disintegrates: Against EMs, AUD was mixed: AUD speculative longs eased 5k last week but remain hilariously, wonderfully long at 57k: Gold held on: Brent broke out. WTI is

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Elon Musk brought to tears by Aussie power prices

From the Daily Heil: Billionaire energy mogul Elon Musk was almost brought to tears by Australia’s deepening electricity crisis that has prices soaring out of control. The Tesla boss was confronted with figures showing record numbers of people were disconnected because they couldn’t pay their bills. ‘Wow, really?’ he said in disbelief when told by 60 Minutes

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Daily iron ore price update (smogged)

Iron ore price charts for October 27, 2017: Tianjin benchmark got smoked $1.90 to $58.70. Paper recovered a little overnight. Steel fell sharply. Everything is at the bottom of recent ranges and shutdowns have not even started in earnest yet, via Reuters: “More cities, including Tangshan, have been ordered to deepen production cuts during the

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APLNG commits to greater gas price gouging

The LNGers get such an easy run considering the economic black hole they have unleashed. Via Domainfax: Gas producer and exporter Australia Pacific LNG has promised to significantly boost the supply of natural gas to the domestic east coast market, after striking a sales agreement with major shareholder Origin Energy. APLNG, a joint venture between

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Daily iron ore price update (S11D)

Iron ore charts for October 26, 2017: Tianjin benchmark fell 0.8$ to $60.60. Paper fell further overnight. Steel futures are confused. More from Reuters: China has stepped up efforts to cut industrial production to to combat smog, which typically occurs during the winter months as industrial emissions mix with smoke from coal-fired heating units. Steel

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Import, export prices signal terms-of-trade fall

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released export and import prices for the September quarter, which portends another fall in Australia’s terms-of-trade when the national accounts are released in early December. According to the ABS, export prices fell by 3.0% over the September quarter but were up by 14.2% over

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Fortescue’s discounting disaster deepens

From FMG’s September QTR production report: • Steel output in China remained at near record levels during the September 2017 quarter maintaining the strong demand for iron ore. Steel mill profitability has also remained at historically high levels and continues to incentivise blast furnaces to maximise production supporting the premium for higher grade iron ore.

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Great Caterpillar recession ends with a bang

Via Caterpillar: Caterpillar continues to see strength in a number of industries and regions, including construction in China, on-shore oil and gas in North America, and increased capital investments by mining customers. We are working with our supply chain to increase production levels to satisfy customer demand for those markets that have improved. In July 2017, Caterpillar

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Daily iron ore price update (China data and outlook correction)

Iron ore price charts for October 23, 2017: Tianjin benchmark fell 50 cents to $60.30. Paper stable overnight. Steel the same yesterday. Port stocks rose 800kt to 132.15mt last week. First, a  confession. I’ve made a mistake. In the recent China September data dump I accidentally dropped the wrong data point into my China construction

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LNG jokers burn $4.5bn for fun

Via The Australian comes the marvel of Australia’s LNG boom: The huge impact of the OPEC oil cartel’s battle with US shale producers has been starkly revealed in a national industry survey that says Australia’s oil and gas industry logged a combined 2015-16 underlying net loss (excluding writedowns) of $4.5 billion. The results of the

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Daily iron ore price update (growth crunch)

Tianjin benchmark up $1.2 or 2% to $60.80. Paper lost most of Friday gains overnight. Steel futures were strong. In news, China’s NDRC hosed off growth expectations Friday: China has forced 28 cities in smog-prone northern regions to reduce emissions of airborne particles known as PM2.5 by at least 15 percent from October to March

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Daily iron ore price update ($50s)

Iron ore price charts for October 20, 2017: Tianjin benchmark fell $2.1 or 3.4% to $59.6. Paper held on overnight. Steel fell. In news, the winter shutdowns crashed the Platts steel sentiment index, via Bloomie: “We expect strict enforcement of the winter supply-cut policies in order to guarantee planned reductions in pollution,” Citigroup Inc. analysts

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Daily iron ore price update (Xi splat)

Iron ore price charts for October 18, 2017: Tianjin benchmark was unchanged at $61.70. Paper cracked overnight. Steel fell a little. Xi Jinping appears to have disappointed Dalian.  Reuters has texture: Market participants are also watching the Communist Party congress with President Xi Jinping saying China’s campaign against corruption has achieved “overwhelming momentum” as the

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Daily iron ore price update ($40s)

Iron ore price charts for October 17, 2017: Tianjin benchmark  fell 70 cents to $61.70. Paper took off overnight. Coking futures and physical and are stuck around $180. Steel is stalled. CISA output for late April was up 1.1% to 1.87mt with no sign of any shutdowns yet. Bloomie has some more on the outlook: “The

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RIO pumps iron ore hard

From RIO’s third QTR production report: Pilbara operations Pilbara operations produced 241.9 million tonnes (Rio Tinto share 198.4 million tonnes) in the first nine months of 2017, one per cent lower than the same period of 2016, mainly due to weather disruptions in the first half of the year. Third quarter production of 85.0 million

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Daily iron ore price update (flame out)

Iron ore price charts for October 16, 2017: Tianjin benchmark lifted 4.5% to $62.4o. Paper gave it all back overnight. Steel futures rose a bit yesterday. Port stocks fell 2.5mt last week to 130.35mt. Nothing changed for me. The path of least resistance still seems lower on the basic guess that winter shutdowns will balance