Iron ore price

Major iron ore equities are still levitating as the spot price falls to new lows: Both FMG and RIO are off their recent lows by 5% plus, even as the iron ore price reached a new low yesterday.

Here are the iron ore charts for May 27, 2014: More subdued action.

The little iron ore derivative bounce carries on today with Dalian up another half percent and rebar futures a little as well and mining equities are following.

Here are the iron ore charts for May 26,2014: All green in both paper and physical markets for a change, including rebar futures.

Reuters has a couple of pieces on iron ore this afternoon.

The iron ore price fell on Friday May 23, 2014 by 1.3% to an equal low for this long down move at $97.50: More of the same.

From Goldman Sachs: Although it’s already come a long way, there is good reason to argue for materially lower levels.

It appears the Odisha Indian supply threat is easing much faster this time.

The AFR is reporting that: A Whitsunday tourism operator has claimed an unlikely victory in his fight to prevent Deutsche Bank financing the $1.8 billion Abbot Point coal terminal in the waters of the Great Barrier Reef.

Here are the iron ore charts for May 22, 2014: So, a little paper market bounce with rebar futures managing the same.

From Reuters: Tugboat workers agreed on Thursday to suspend plans to go on strike at Australia’s biggest iron ore port till at least late June, just as miners stepped up efforts to avert action that could halt a quarter of the world’s seaborne iron ore supply.

Here are the iron ore charts for May 21, 2014: Paper markets managed a little bounce with rebar futures joining in.

I am a big fan of Fortescue Metals.

From the World Steel Association today: World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 137 million tonnes (Mt) in April 2014, an increase of 1.7% compared to April 2013.

Both FMG and RIO got smashed to new lows this morning:   However, Dalian iron ore futures up 1% this afternoon at 708 and that has both miners recovering losses.

Find below a terrific little note from NAB giving a potted history of the Chinese steel sector.

A nice piece of analysis at FXStreet has caught my eye and helps explain argument I’ve been making since Q3 last year, that the end of Q’14 was going to bring trouble for iron ore.

Here are the iron ore charts for May 20, 2014: No let up.

From Reuters today: Teekay Shipping took part in Australian government-sponsored mediation talks on Tuesday to avert industrial action by tugboat operators that could halt a quarter of global seaborne iron ore exports.

From the AFR: …18 brokers recommend buying the stock while just one, Goldman Sachs, think clients should sell it… …Rio Tinto has 15 brokers calling the stock a buy, while just five have a ‘hold’ rating and no broker thinks it’s an outright sell.

FMG is powering today, up 4%, but the news in China ain’t so good.

China’s Dalian futures are down another half a percent so far today but miners are catching a break since 11.30 when the dollar was hit.