aud to hit $ us85c, page-22

"Iron ore slumped into a bear market last week on concern that slowing economic growth in China, the world’s biggest buyer, will hurt the outlook for demand."

Hottie, that's a load of bs. April iron ore imports into China increased ~14% (Australia's share increased by 25%) and it's been tracking that level of growth all year. And given that port inventories have declined by about 7% since the start of the year, there's no reason to doubt that ore is being consumed.

Iron ore output from Chinese mines grew 6% yoy in April, compared to an average 11% yoy growth in the preceding months. So there is contraction in local production growth there... when considering ore output. When you calculate it based on Fe content (A much better indicator), production growth has come to a standstill.

Although the prices of imported ore has slipped about 25% since the peak (and a 50% fib retraction from low to high)... domestic prices are telling a different story, iron concentrate prices in the major centres have fallen between 10-15% and iron pellet prices 6-10%... and those price falls are apparently sufficient to start cancelling production from within China.


Post #:9370830 Cracked me up big time :D