Macro Investing: The coming iron ore glut

The iron ore price rose 15-fold in less than a decade. David Llewellyn-Smith explains the coming iron ore glut and what it means for your portfolio.

In early 2003, Australian iron ore was trading at $12.05 per tonne. Relations between Australia and the dominant buyer of iron ore, Japan, were cordial. Each year a meeting took place between miners and steel mills to negotiate an annual contract price for bulk iron ore shipments in the year ahead.

Against the backdrop of gleaming Tokyo skyscrapers, perhaps tea was shared during gentlemanly discussions. Either way, BHP Billiton and Rio Tinto made handsome profits.


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