BHP and VALE caused glut in iron ore commodities as guidance was lowered and their stock goes up while US miners get short attacked. SMH
Quote:He singled out miner Vale SA, which has been struggling to regain lost production after a tailings dam disaster last year and disruptions due to a rising tally of coronavirus cases.
Iron ore shipments to various destinations from Australia and Brazil dropped 7.6% over June 29-July 5 from a week earlier to 26.3 million tonnes, after rising steadily for three weeks, according to consultancy Mysteel’s latest survey.
“With optimism surrounding China’s infrastructure program and resilient housing sector, Chinese demand is likely to absorb most of the shortfall in iron ore demand from the rest of the world,” Smirk said in a note.