The iron ore tariff

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The ferrous complex is following its typical seasonal pattern leading into Lunar New Year.

But do not be fooled. This is not a good omen for the year ahead.

Westpac has warned that iron ore prices could collapse 30 per cent this year to about $US70 a tonne when Rio Tinto floods the market with fresh supply, deflating hopes of a sustained rebound for Australia’s key export.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.