You can see that iron ore didn't really take off until 2005. Perth was booming when Fe was $76.20 per tonne USD. About $82.83 per tonne AUD. We are still higher than that now and selling much greater volumes, and I should think that efficiency has been ramped up.
The only other factor that I can think of is WA has increased it's Royalties.
Quote:
Premier Colin Barnett said the royalty rate for fines iron ore - grains smaller than 10 millimetres - would increase from 5.625 per cent of sale revenue to 6.5 per cent from July 1, next year and to 7.5 per cent from July 1, 2013.
Lots of people do actually benefit financially when house prices rise, so millions of people do have reason to celebrate. But who benefits when the iron ore price falls? Who is Llewellyn-Smith celebrating with, apart from a small group of bitter whinging bears who will celebrate any bad news because they falsely believe it brings closer the house price crash they desire. They even cheer on unemployment. They want a recession and they want people to lose their jobs because they hope to benefit from the misfortune of others.
1.4 billion Chinese would be happy about the price of iron ore falling. Maybe he is celebrating in solidarity with our overlords.
1.4 billion Chinese would be happy about the price of iron ore falling.
To the extent that contract iron ore is falling and the price of steel in China with it, it is definitely subsidising the government's big investments in affordable housing and railroads. Another reason to buy shares in Chinese construction companies?
You can see that iron ore didn't really take off until 2005. Perth was booming when Fe was $76.20 per tonne USD. About $82.83 per tonne AUD. We are still higher than that now and selling much greater volumes, and I should think that efficiency has been ramped up.
Peter - that's very disingenuous.
You read macrobusiness on a regular basis so I'm certain you understand the commodity cycle well.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
The price of iron ore tanked again overnight with September futures falling $1.43 a tonne to $85.27.
The commodity price has continued its downward trajectory for the majority of 2014.
Dealing with the falling price per tonne, miners have been boosting export volumes – a move which was demonstrated in today’s balance of trade data released by the Australian Bureau of Statistics – which showed lump iron ore exports rose in July but the unit value fell.
Today the Pilbara Ports Authority released its monthly throughput statistics for August.
Over the month 50.9 million tonnes of iron ore was exported through its terminals with the majority (37.3 million tonnes) shipped out from the Port at Port Hedland.
Total iron ore shipped from Port Hedland rose slightly from the 36 million tonnes shipped in July.
The chart below shows what cargo was shipped to which country from Port Hedland in August.
Prior to the GFC Australia supplied ore at a contract price. I don't know what prices Rio and BHP had prior to the GFC but have a look at these contract prices from econstats.
They go back to 1976 and they don't appear to show any cyclical fluctuations, or maybe they don't because of the way the demand from China has completely dominated the market and affected the prices.
When I see the change in prices and I know volumes have ramped up considerably, and the huge investments should have increased efficiency, I'm convinced that Rio and BHP are making greater profits than they have ever made, and their profit statements bear that out.
Seriously I think that prices will need to fall a lot more before those two miners start to hurt, and at that point they will be looking to buy assets, they are well cashed up. They are in a good spot, if prices rise they profit, and if they fall they pick up cheap assets.
Happy to learn more about this cycle.
Any expressed market opinion is my own and is not to be taken as financial advice
You would respond in the same way if Sydney house prices hit $1mil by 2015. When you've staked your reputation on the outcome, you'd feel some satisfaction if your predictions were fulfilled, even though it was bad for the economy.
No, you have it wrong.
He predicted in 2007 that Sydney median would be $1,250,000 by 2014, but then in 2008 the GFC hit and he moved the goal posts.
His Sydney predictions were going on prices doubling every seven years or even sooner.
Lots of people do actually benefit financially when house prices rise, so millions of people do have reason to celebrate. But who benefits when the iron ore price falls? Who is Llewellyn-Smith celebrating with, apart from a small group of bitter whinging bears who will celebrate any bad news because they falsely believe it brings closer the house price crash they desire. They even cheer on unemployment. They want a recession and they want people to lose their jobs because they hope to benefit from the misfortune of others.
I would say it is you that wishes to benefit from the misfortune of others.
Perhaps he is cheering because this Chinese counterfeiting is finally coming to an end. And that housing will become more affordable for thos that need it to live in rather than some rich foriegn chinese non citizen buy another investment property so the young Australian citizen of many generations is unable to afford somewhere for their family to live, or struggle for the next twenty years of their life just so some foreign investor can hopefully make more money while the young of Australia are left to suffer the conesquences.
Whose benefittimg from peoples misery now ?
The job loss and misfortune is what the government has engineered for our economy, and all for their own greed , at the great expense of others.
You want to say they cheer on this and that, you cheer on the young of Australia being unable to afford a basic right to life , housing.
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