The fine line in iron’s decline

Rather than a total meltdown, an improving global economy and rising steel demand should put a floor under the iron ore price.

You know what has been missing from this rally? Any affection for our iron ore miners. Since the beginning of the year , the All Ord’s is up some 6% (10% at the peak), while our big miners hit a peak of about 4% and are currently 12% lower year-to-date. Outside of our behemoths, Fortescue is 15% lower (although it was up 18% at the peak). Now we know the story – the hunt for yield, our banks are doing marvellously and the like. We also know why our resources are being hit and why iron ore in particular is out of fashion – China slowing, steel demand slowing and a huge supply of iron ore coming on board.


SMS Code Sent…

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Log in to access this content

Looks you are already a member. Please enter your password to proceed

Hi {{ user.FirstName }}

Verify your mobile number to unlock a FREE trial

Looks like you've already taken a free trial

Please sign up for full access

Updating information

Please wait ...

Related Articles