Pellet Price Tracking, page-514

" IO is not a rare commodity it will tank again one year"
Possibly this will happen eventually, however I don't think iron ore will tank in the next few years, the amount of infrasatructure investment in China will mean that the iron ore price will go higher. BHP, RIO and Vale have learnt from the previous iron ore busts, they no longer try to bring on huge new projects, rather only look at replenishing deposits that run
down. The sharesholders called for more returns during boom times which is what is now happening.
A Labor Government is the only problem I foresee in the near future, they'll need to get quick money from taxpayers. I worry about Franking Credits, these grubs will try their hardest to raid the cookie jar.

China – PboC cuts 15bp off its prime 5-year lending rate

• The PBoC cut a key rate on five year loans by 15bp, a record amount, as authorities are aiming to prop the economy amid dwindling consumer demand and weak housing market.
• Estimates were for a 5bp move.
• Although, the one year loan prime rate was kept unchanged at 3.7% compared to a 5bp cut expected by markets.
• The news helped to lift the risk sentiment with regional equity indices up nearly 2-3%.
• The reduction in the 5-year prime lending rate, a key influence in mortgage rates still gives plenty of room for manoeuvre
• But the problem is that the differential between US and China rises as US interest rates rise drawing funding away from China and back into the US
• China risks a major crash in property if unemployment rises as SMEs go bust if they do not lower the relevant interest rates
• Is every central banker stuck between a rock and a hard place?
• Stimulus: China will continue to push ahead with its four major infrastructure projects, hence ongoing high prices for iron ore and related raw materials.
• Increasing high-speed and freight rail lines remains a priority for the government as does the continuation of infrastructure for new urban clusters.
• Industrial production in Shanghai fell 61.5%yoy in April compared to the 2.9% drop recorded nationwide.
• Retail sales were down 48.3%yoy, compared to the national decline of 11.1% last month.
• The reading highlights devastating effect of a Covid related lockdown on economic activity in the city that accounted for ~4% of China’s GDP.