Commodities

From Deutsche: We retain our SELL on valuation (A$1.44/sh) and high debt levels. The dramatic drop in Life of Mine (LOM) strip ratios continues.

Here are the iron ore charts for July 23, 2015: Qingdao firm.

Brent oil posted another new low overnight, down 1% to $55.50 as I write.

It’s teetering. It’s tottering. But has not yet fallen. RIO has been pushed the brink of its spectacularly bearish chart again today, down 2% to $51: That bearish descending triangle is enormous and the $50 range has been a significant support for nearly ten years (GFC excepted).

From Mac Bank: Iron ore import volumes had already been released with preliminary trade data earlier in the month, but the full release gave an indication of partner countries.

FMG’s quarterly production report is out: A few points.

Here is the Thompson/Jeffries CRB index (of commodities including energy, softs, metals): The dream is over. We are now back at 2003 levels and very likely to keep falling. In technical terms the chart exhibits an enormous bearish descending triangle on the verge of breakdown (like so many of the component parts).

Courtesy of Zero Hedge and from Caterpillar’s earnings release: Super cycle going super bust!

From the World Steel Association: World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 136 million tonnes (Mt) in June 2015, a -2.4% decrease compared to June 2014.

Here are the iron ore charts for July 22, 2015: Qingdao eased but Tianjin benchmark was smashed 2.8% to $50.70.

Big iron ore is taking it in the team today as the iron ore bounce looks very thin.

From Mac Bank: Steel production cuts have accelerated in China – in the first ten days of July,CISA mill production was at only 622mtpa, down by 6.1% YoY – the largestYoY drop of the ten-day series since mid-February.

BHP has released its year-end production report: Group production(1) increased by 9% for the 2015 financial year.

Here are the iron ore price charts for July 21, 2015: The spot rally flamed out in Qingdao but rose a little further in Tianjin to $52.10.

Brent oil ran higher overnight to $57.17 largely in response to a big US dollar sell off.

From Bloomie: *IRON ORE SEEN DROPPING EVERY QUARTER THRU 2Q 2016, GOLDMAN SAYS Prices seen at $49/ton in Q3 2015, $48 in Q4, $46 in Q1 2016 and $44 in Q2 2016, bank says in report.

From The Australian comes Atlas regrets: The Australian understands that Atlas had completed documentation for a “company-transforming transaction” with one of three so-called strategic parties with which it was in discussions, but the deal went unsigned after iron ore price posted its biggest single-day fall to its lowest level in more than six years.

Here are the iron ore charts for July 20, 2015: Spot gyrations have thrown up a big rally with Tianjin up 3.8% to $51.90.

Brent can’t catch a break now down again overnight to $56.52.

The dreadful Atlas raising is complete: So instos coughed up…wait for it…$12 million.