Daily iron ore price update (strong)

Iron ore prices for May 13, 2020: I see this latest strong price action as a combination of restocking, exaggerated by Brazil worries, and strong seasonality. The last will reverse into June but the former will last as long as the virus threatens supply. Capital Economics high-frequency indexes look better today too: The major pulse


Inside the coal crash

From Westpac’s excellent Justin Smirk: Coal prices tumbled in April, iron ore was more stable while base metals firmed a little Coal prices have been falling rapidly with the latest spot Qld met coal prices down –39% in the last three months and Newcastle thermal down –21%. As a result we have lowered our near,


Can Australia be a green steel superpower?

So says Grattan: Australia has an historic opportunity to create a multi-billion-dollar, export-focused manufacturing sector based on globally competitive renewable energy. Using Australia’s plentiful wind and solar resources to make energy-intensive ‘green’ commodities could create tens of thousands of jobs in regions that currently employ tens of thousands of coal miners and other ‘carbon workers’


Daily iron ore price update (Brazill)

Iron ore prices for May 10, 2020: Spot jumped, I suspect over two days. Steel output is now roughly tracking last year’s output despite the vast inventory overhang. The Brazil risk is rising: Concerns about Brazilian iron ore supply resurfaced among market participants this past week due to expectations that exports of the product would


Australia’s gas chance is NOW

Rio wants it fixed, at The Australian: Rio Tinto boss Jean Sebastien Jacques says sorting out Australia’s long-term energy policy should be a key plank in the federal government’s plans to bring the national economy back from the coronavirus crisis, saying cheap and reliable power is one of the keys to economic recovery. Speaking to


Under the bonnet, Australia’s terms of trade are falling fast

Nobody cares right now given a world of depressionary data and limitless stimulus but Australia’s terms of trade are correcting fast. Coking coal spot has fallen back to $117 in recent days. Futures are pointing lower ahead. Thermal coal has been monstered to 2015 lows at $56 as LNG collapses across Asia. Spot prices for


China’s stalled recovery looks bad for iron ore

Via Captial Economics: Most noteworthy for Australia is that stalled property sales recovery. Volumes down one quarter is worse than the 2015 bust that crushed bulks. There are offsets in infrastructure with local governments on the move: But infrastructure is less steel intensive that realty. The stimulus is relatively modest in context: Hence rate cuts:


Daily iron ore price update (hapless Vale to the rescue)

Iron ore prices for April 17, 2020: More good news for Aussie producers: Brazilian miner Vale SA on Friday cut its forecast for production of iron ore fines and pellets, copper and nickel in 2020, saying in a securities filing that the new coronavirus outbreak was delaying some facilities from reopening. Vale reduced its forecast for annual production of


Westpac: Coal buckling, iron ore next

Via Westpac: The deep global recession and similar contraction in industrial production represents a significant destruction in demand, while to date supply disruptions have been mixed. The most significant revision has been for crude oil while base metals have weakened further. Iron ore prices remain well supported, for now, but the lift in supply has