mercredi 1 avril 2015
Iron Ore Weighs Further on the Aussie
Posted on 18:36 by nice news
Overnight the price of Iron Ore was still the big issue for Asian traders. Markets are still concerned about growth in the Chinese economy and compounded by over an over supply of Iron Ore, the price of the commodity was again hammered. As you can see in the data below from Bloomberg, it’s been almost all downhill for the last couple of years, with falls exaggerated more recently.
The supply issue isn’t going anywhere and the big players still have room to move on price, as Westpac’s Justin Smirk notes:
“As noted, BHP and Rio Tinto can deliver into the Chinese market for around $US40 per tonne and have an objective to drive costs even lower.”
It’s tough for the junior miner’s but it’s good business if you’re BHP or Rio…
On the back of this, combined with the general market consensus that the RBA will cut rates next week, the Aussie was one of the hardest hit. The bears are fully in control here. Be careful swimming against the tide in this sort of environment.
The supply issue isn’t going anywhere and the big players still have room to move on price, as Westpac’s Justin Smirk notes:
“As noted, BHP and Rio Tinto can deliver into the Chinese market for around $US40 per tonne and have an objective to drive costs even lower.”
It’s tough for the junior miner’s but it’s good business if you’re BHP or Rio…
On the back of this, combined with the general market consensus that the RBA will cut rates next week, the Aussie was one of the hardest hit. The bears are fully in control here. Be careful swimming against the tide in this sort of environment.
Iron Ore Weighs Further on the Aussie
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