After the initial crash in many of the commodities backing China’s shadow-banking system’s ponzi, levels recovered modestly as rumors were spread of bailouts, stimulus, and in fact the exact opposite of what the Chinese government had declared it was trying to do. That ended for Iron Ore this weekend when, as The FT reports, China announced plans to get tougher on loans for iron ore imports as concerns grow that steel mills are using import loans to stay afloat in defiance of policies to reduce overcapacity in heavily polluting and lossmaking industries. Iron Ore prices tumbled overnight, closing near the lowest levels since Sept 2012 as it appears the PBOC and CBRC are serious and set to implement the tougher rules on May 1st.
Yup, and the good old kiwi sucker thinks the value of west coast blank sands is in the iron itself, when in reality if NZ had continued research once done by New Zealand Steel before it was sold to the Ausies, then we would be raking it in on the titanium, vanadium, tungsten and other contaminants that China argued should lower the price of the sand.
It’s just another example of NZ selling of an asset at well below true market value, and thinking we did good.