As China-Australia Ties Worsen, Iron Ore Remains Bulletproof

, , , ,

By Michael Heath | Bloomberg

As China-Australia relations descend into a morass of sanctions and mutual recriminations, Beijing is delivering a huge cash windfall to Canberra and Australia’s economy through its insatiable demand for iron ore.

China has few alternatives as it seeks to stimulate its economy post Covid-19 through infrastructure investment, with Australia accounting for more than half of iron ore shipments globally. If Beijing were to try to purchase solely from non-Australian producers, at best it could get 56% of the volumes it typically imports, according to analysis by Goldman Sachs Group Inc…Full Story

Related Posts

,

Anglo American, South32 walk away from thermal coal

By Vanessa Zhou | Australian Mining Anglo American is the second company to cut off its South African thermal coal assets following a similar move by South32 last week. Anglo American plans to demerge its thermal coal operations in South Africa and establish a new holding company called Thungela Resources to hold the assets. The […]

,

Coal snapshot: Mid-term outlook is positive

Gerard Peter | Mining Review Africa While there is a concerted effort by nations to reduce reliance on coal for both energy and production purposes, research analyst Fitch Ratings believes that the medium-term outlook for the commodity remains buoyant. There can be no doubt that the coronavirus pandemic has had an effect on global demand […]