Iron Ore, China, Australia and the U.S.

What if the U.S. requests (instructs) Australian companies to not sell Iron Ore to China anymore?

After all, it’s being done amongst the semiconductor industry.

Does Australia comply in line with its signed security pacts?

The price of 62% Iron Ore (as traded in Singapore) closed at $81.00.

I’ll look for $76.00 price early next week.

This latent weakness correlates well with the leading weakness seen in the AUD/USD.

And Iron Ore related equities are dancing in tune as well.

The risk (or opportunity) lies in the answer to the question posed at the beginning of this note.

October 28, 2022

by Rob Zdravevski

rob@karriasset.com.au