Iron ore is going to crash for years

Via Yahoo: With iron ore markets tight and margins at astronomical levels, Vale SA (VALE) has announced that its board of directors have approved the implementation of the Serra Sul 120 Project, in Canaã dos Carajás, Brazil. The Serra Sul 120 Project consists of increasing the S11D mine-plant capacity by 20 Mtpy, which will total


Daily iron ore price update ($130)

Iron ore prices for August 6, 2020: Spot scorcher. Paper too. Steel is muted but OK. OK, so get this: Rising car and excavator sales in China further buoyed sentiment, analysts at Beijing-based Sinosteel Futures Co Ltd said in a note. “Good car sales data shows that domestic demand is improving, and excavator sales also


Commodity price index lifts in July

The RBA has released its commodity price index for July, which rose 0.9% in SDR (currency weighted) terms – the key determinant of the terms-of-trade – but slumped by 12% over the year: Preliminary estimates for July indicate that the index increased by 0.9 per cent (on a monthly average basis) in SDR terms, after


Daily iron ore price update (PMI)

Iron ore prices for July 31, 2020: Spot stable. Paper up. Steel plodding along. The Chinese Steel PMI was out and it wasn’t great: That’s some meh levels that do not justify today’s prices. But that only strengthens my notion that this is a policy-driven rally with steel mills pumping the stuff out purely to


MB Radio: A podcast of gloomy disposition

  With the sheer enormity of the COVID19 pandemic’s economic impact only starting to dawn, David Llewellyn Smith and Leith Van Onselen spoke with Gunnamatta on the major forms the shock has taken through the Australian economy.  Over the course of about 75 minutes (3 parts) they cover the ugly numbers and the dynamics across


Should we allow RIO to kill the Pilbara?

That’s China’s plan. And RIO is integral to it, via Bloomie: Rio Tinto Group is accelerating work toward potential development of the giant Simandou iron ore project in Guinea, as half-year earnings showed the steel-making ingredient dominated the second-biggest miner’s profits. …“Under all scenarios Simandou will be developed, with or without Rio Tinto,” Chief Executive


Daily iron ore price update (RIO)

Iron ore prices for July 29, 2020: Chinese demand still looks good: Brazil still looks bad: RIO loves it: Rio Tinto says China’s heavy industry is working at full speed and the Chinese economy could grow at up to 8 per cent next year, fuelling demand for Australian commodities like iron ore. China has responded


Daily iron ore price update (DXY)

Iron ore prices for July 24, 2020: ‘ Spot down. Paper down more. CISA steel output remains ridiculously amid high and rising inventories. I am not concerned about it because market factors have been suspended. This is policy-driven output. I still see iron ore as strong until Sep/Oct seasonal weakness. Even more so if DXY


Here comes the oil

Via Bloomberg: Having successfully doubled crude prices over the past few months through unprecedented output cuts, the OPEC+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little. …A second