Commodities

Here are the iron ore charts for 5th May, 2014: Not much to say for either paper or physical markets on sideways movement.

HSBC’s Paul Bloxham today offers a lesson in how to get on with life during a commodities bust: Iron ore exports continue to ramp up strongly, despite China’s recent slower growth.

From Reuters: China’s Baoshan Iron & Steel Co Ltd (Baosteel) (600019.SS) and Australia’s Aurizon Holdings Ltd (AZJ.AX) launched a $1 billion bid for an Australian resources firm in a move that could break the stranglehold of giant miners Rio Tinto (RIO.AX)(RIO.L) and BHP Billiton (BHP.AX)(BLT.L) on the country’s iron ore exports.

Here are the iron ore charts for May 1, 2014: Chinese markets were still closed.

From Mac Bank: OAO Mechel is the latest miner to cut met coal production in North America, having announced on Tuesday that it is halting its Bluestone operations in West Virginia.

China was closed yesterday for the May Day holiday so there’s no price update.

The iron ore majors are breaking down technically.

More from Vale overnight via the SMH blog: Vale’s iron ore selling prices during the quarter were “materially below our and consensus estimates”, says UBS analyst Andreas Bokkenheuser.

Here are the iron ore charts for April 30, 2014: The Baltic Dry capesize was down 1% and rebar futures eased to their lows.

Done like a dinner.

Dalian futures are down 1% today but rebar futures are up a touch.

Here are the iron ore charts for April 29, 2014: Paper markets managed weak bounces only with rebar futures joining in.

Dalian and rebar futures have both stabilised in China this afternoon but nothing can save equities today.

Here are the iron ore charts for April 29, 2014: So, not so good.

From FTAlphaville today: Banks are selling off their commodity divisions for regulatory reasons but also because commodities are turning out to be less profitable for them than they used to be.

From Reuters: Chinese iron ore futures dived nearly 5 percent on Monday as investors are worried that domestic banks could further cut credit lines to the sector to minimize default risks amid a slowing economy.

Here are the iron ore charts for 25the April, 2014: These charts consolidate Thursday and Friday moves.

From Business Spectator this morning: Coking coal prices have slumped to six-year lows, many Australian mines are not making money and the industry is set to close more of the mines that produce the nation’s second most valuable export.

From Westpac’s Robert Rennie: Last week’s iron ore quarterly production data from Australia’s ‘big three’ miners proved to be something of a mixed affair.

Here’s a timely report by Goldman Sachs supporting my spray at iron ore delusion this morning: Time to digest an investment binge in excess of US$2 trillion We have long argued that commodity supply cycles can be divided into investment and exploitation phases that create a full 20-30 year supply cycle.

Delusion appears to have seized iron ore markets.

The entrepreneur as Nietzschean ubermensch is one of the more unfortunate features of contemporary business journalism.

Here are the iron ore price charts for April 23, 2014:   More paper market weakness though tailing off.

From the ASX, Padbury Mining has confirmed that Roland Bleyer  is the mysterious private equity player behind the $6.4 billion deal to resuscitate the Oakajee iron ore project.