Commodities

Here are the iron ore price charts for May 14, 2015: Apologies for lateness this morning, data issues.

Oh dear: Prime Minister Tony Abbott has backed calls for an inquiry into competition in the iron ore sector amid concerns Rio Tinto and BHP Billiton are oversupplying the market to squeeze out smaller operators.

Ah, the cycle accelerates downward.

From the AFR: The iron ore industry is likely to face a Liberal-led parliamentary inquiry after Rio Tinto’s Australian managing director, Phil Edmands, mounted an 11th hour bid to kill a Senate inquiry proposed by an ally of Fortescue Metals Group chairman Andrew Forrest, Senator Nick Xenophon.

Big miners are getting hammered today as dreams of a bottom and recovery collapse.

From the AFR: A “furious campaign” by big iron ore miners could see a proposed federal parliamentary inquiry into the industry heavily watered down or defeated.

by Chris Becker From Stocktwits comes a nice chart showing how previous crashes in oil recovered: This should inject some caution about declaring that this time is different.

From the AFR: One of Aurizon’s largest shareholders has urged the board to look outside existing company directors for its new chairman, and backed Perpetual Investment’s call for the rail operator to focus on its core business and return more capital to investors.

Here are the iron ore charts for May 13, 2015: Qingdao eased and Tianjin benchmark did as well falling 0.5% to $62.

From the Herald Sun today comes  real clangor from Scott McDine, national secretary of the Australian Workers’ Union: RIO Tinto and BHP Billiton are today two of the largest and most powerful multinational corporations the world has ever known.

You have to wonder at what it will take to get some system hugging media to recognise balderdash.

From The Guardian: About 700 jobs will be lost at Fortescue Metals, its founder Andrew Forrest has confirmed.

From the AFR: Glencore has revealed it is under audit by the Australian Tax Office as it fights two tax assessments, and released documents showing its local arm has paid about $177 million in company tax over the past two financial years.

Here are the iron ore charts for May 12, 2015: Still only a very minor pullback in spot with Tianjin benchmark likewise down 0.2% to $62.30.

Don’t look now but the Australian Senate is entering the iron ore war, from the AFR: Independent Senator Nick Xenophon will call for an urgent inquiry into Australia’s $57 billion iron ore industry, which could trigger tougher rules governing Australia’s biggest miners, BHP Billiton and Rio Tinto.

The Brent oil price jumped more than 2% last night to $67.16 as I write.

Big iron is struggling to make headway again today with BHP up 1.7%, RIO flat and FMG down 2%.

From Goldies yesterday: …we believe iron ore exports misfired slightly in April in both Australia and Brazil, the world’s largest exporters.

From MiningM: ANGLO American may nudge production from its Minas Rio iron ore mine to 29 million tonnes/year by 2020 as it optimises its processes, but it was unlikely to embark on a second stage expansion, at least in the medium-term.

More contradictory and twisted drivel from Twiggy today.

Here are the iron ore price charts for May 11, 2015: We have ourselves a little divergence.

The Brent oil price was flat overnight at $65.62.