Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 21 February 2017

Iron ore turns parabolic

Bazinga

Did I say I'd cut down on the rapid fire iron ore price posts?

Oops, sorry about that!

The spot price blazed $2.52/tonne higher today to yet another new multi-year high of $94.86/tonne.

The latest move is turning borderline parabolic.


The iron ore price is now up by an astonishing 148 per cent since its nadir, which should help to get Australia's persistent budget deficit back into some kind of better shape.

It's almost as if the Aussie dollar doesn't believe in the rally, and as a result the spot price in Aussie dollar terms is now ~A$124/tonne.

Leveraged iron ore producer Fortescue Metals Group (FMG) salso aw its share price nudging multi-year highs today before closing at $7.15, for an almost unfathomable turnaround story.

Meanwhile BHP Billiton Limited (BHP) is enjoying the now enormous rebound in commodity prices, reporting a return to profit today in its half year results to 31 December 2016.

Picture by Ryan McGuire