Iron ore price, page-54178

If i were you Nolan, I would sell into the rally (if it comes). Iron Ore is going to be in the doldrums for the foreseeable future, which inevitably means lower dividends.

https://www.news.com.au/finance/business/mining/bleak-future-every-14-drop-in-iron-ore-price-will-devastate-australia/news-story/9275b0d3bc4ff21476dbcf1296748f32?amp

‘Bleak future’: Every $14 drop in iron ore price will devastate Australia

Australians are anxiously awaiting the fallout from an “economic tsunami” – and a new move from China has caused fresh panic.

Shadow Finance Minister Jane Hume says “no real structural work” has been done to the budget as the last two budget surpluses have been delivered by rising commodity prices and bracket creep.
A decrease in iron ore prices could lower company tax receipts over the next four years. “The Treasurer should have acted two years ago,” Ms Hume told Sky News Australia. “The last two budget surpluses have been delivered by only two things – rising iron ore prices and rising coal prices, and also bracket creep. “In fact, there’s been no real structural work that’s been done to the budget to bring it back into surplus – only the hard work of ordinary Australians through their rising wages and the bracket creep and rising taxes its gone with it, and those luck of the draw commodity prices have delivered Jim Chalmers a surplus. “We don’t want to just see Australians doing the hard work; we would like to see the Treasurer doing his hard work as well.”

China has suddenly suspended construction of new “green” steel plants. Chile’s major manufacturer has halted production. India and Malaysia are investigating product “dumping”.

And Australia’s iron ore miners are awaiting the fallout.

The economic tsunami unleashed early last year with the collapse of Chinese property giant Evergrande is finally surging through global markets.

China’s construction industry used to consume more than half of that nation’s total steel production. Now it’s less than a quarter.

But, for the past 18 months, the country’s steelmakers have been continuing as though nothing had happened.

They bought (mainly) Australian iron ore. They fed it into their foundries to produce steel. They chased new buyers worldwide to sell it to.

Now stockpiles of both are reaching bursting point.

Below-cost steel is being dumped on the global market.

Over-supply and sagging demand have seen global steel prices fall 15 per cent so far this year to a 10-year low.