Good to see you have studied up on my CYIO vision Snacks -problem is there is a wee bit of iron ore around now and might be a long time between drinks.
Best tune in to my gold strategies now - and you might survive the Depression.
China’s iron ore stockpiles growing
Colin Jacoby Tuesday, 10 March 2009
IRON ore exports to China are threatening to overwhelm the market, Macquarie Research analysts have warned, as latest data shows iron ore stockpiles continuing to rise in the Asian nation’s ports.
In its commodities comment, “China, the iron ore dumping ground”, Macquarie Research said latest data revealed a 3.4 million tonne increase last week in iron ore stocks at Chinese ports to 62.5Mt, the biggest weekly rise ever.
New port export data shows that during January, 75% of all Australia’s iron ore exports were destined for China compared to an average of 53% in 2008, while 82% of all Brazilian iron ore exports were shipped to China during February compared to an average of 40% in 2008 and 2007.
“The latest Chinese data are alarming for iron ore suppliers, which are rushing to sell material into the country,” the comment said.
Macquarie said the latest figures show iron ore producers have increasingly resorted to selling to the Chinese market in order to support production as non-Chinese demand for iron ore dried up.
“Relatively strong steel production and a mini-collapse in domestic iron ore production have made China a relatively attractive destination,” Macquarie said.
“However, the sheer volume of iron ore now coming into China threatens to overwhelm the market, forcing spot prices substantially lower.”
Meantime, the plunge in demand for steel saw Chinese and Japanese steel exports in January collapse to their lowest level in over four years.
China exported just 1.7Mt during the month, a 56% plunge year-on-year, and its lowest monthly exports since July 2004.
Steel exports from Japan were down 35% year-on-year
MDX Price at posting:
40.0¢ Sentiment: None Disclosure: Not Held
