Iron-ore remains in a consistent medium-term downtrend

Fuller Treacy Money

Iron-ore remains in a consistent medium-term downtrend. One of the primary reasons we are having such difficulties with providing a reliable price for the commodity is because it is not freely traded. Following some consultation with Bloomberg I have updated the price once more and will monitor it daily to ensure it continues to update. Iron-ore remains in a consistent medium-term downtrend. Major investment in new supply has resulted in the three major producers ramping up supply just as demand peaked. Mines cannot simply be closed because prices have fallen since some revenue is better than no revenue and debt needs to be repaid. This is similar to the conditions that resulted in the triple waterfall crash of resources shares during the early 1980s and the greatest pressure falls on higher cost producers.

Fuller Treacy Money
Fuller Treacy Money

Fuller Treacy Money is one of the world's most highly regarded research services covering global strategy and investment trends. Produced by Global Strategists David Fuller and Eoin Treacy, Fuller Treacy Money analyses the major markets - stocks,...


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