Who is China’s preferred supplier of Iron Ore?

Here is a chart comparing the stock prices of Iron Ore’s Big 4 to the 62% grade Iron Ore price.

Rio Tinto is cuddling more sympathetically to iron ore’s recent decline.

Fortescue is next.

BHP less so.

VALE being the least.

The percentages that these stock prices are tracking Iron Ore’s price may be a representation of each company’s mine localities, corporate domicile, national allegiance or perhaps ‘politics’.

It may be a the market’s interpretation of who China may see as their preferred supplier?

October 30, 2022

by Rob Zdravevski

rob@karriasset.com.au

Iron Ore to double dip

Iron Ore too….is yet to make a new higher high.

Last week’s intraday high of $132.30 remains shy of October ’21’s $132.60 high.

In addition, trading in Iron Ore futures, on January 13th, 2022 produced a bearish outside reversal day.

I see risk in Iron Ore equities. The bounces have been impressive and taking the ‘fat part’ of the trade should satisfy many.

The advance wasn’t accompanied with robust volume.

I think this market will hurt the latecomers who have bought in the past week.

Markets do that sort of stuff. Shaking out those who shouldn’t be there…..is part of a market’s modus operandi.

Intuition suggests that we’ll see a test towards or close to recent lows. Perhaps I’ll call it a ‘double dip’.

At that stage, we’ll watch for any new ‘lower lows’ or where we see a consolidation.

There are plenty of ‘gap-ups’ to back and fill and the recent rally in those equities gives many a second chance to exit.

For some, it could be a ‘get out of jail free’ card.

#fmg #rio #bhp #min #ironore

January 17, 2022

by Rob Zdravevski

rob@karriasset.com.au

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