Tag Archives | iron ore prices

Iron Ore and Petrochemicals Share The Same Delusions

By John Richardson

BACK in January we wrote:  “As China’s investment growth model is unwound – for economic as well as social reasons –  iron ore prices [will] decline significantly, leading to the failure of the smaller mining companies and …

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Asia Chemicals Will Need To Cut Operating Rates

By John Richardson

THE above chart, from Paul Satchell’s latest Volume Proxy*, indicates that the downturn in Asian chemicals markets has become more entrenched.

“The continued decline in the Asia line lends further support to our earlier assertion that the …

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China Will Not Shut Down. It Will Instead Run Harder.

By John Richardson

EVERY $10 decline in the iron ore price knocks more than $2bn off the annual revenues of Vale,  Rio Tinto and BHP Billion and around $250m from those of Anglo American.

We can see a similar dynamic …

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China Commodities Rally About Protecting Existing Debt

By John Richardson

OVER the last few days we have focused on the increased risk-on trade in commodities, including petrochemicals.

But maybe the rallies we have seen  in products such as fibre intermediates and polyethylene (PE)  are mainly about traders …

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China Credit, Commodities Bubble

By John Richardson

China announced last week that its state-owned banks had lent Rmb1.07 trillion ($172m) in January, which was more than double the amount in December.

Financial markets have taken as evidence that the economic recovery has gained momentum.…

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