China’s economy – not tariffs – is the big risk to Australia
Despite the trade war, the iron ore price has barely blinked. But big global investors doubt that’s sustainable, and that means a big hit on our miners.
As the United States and China’s tit-for-tat tariffs and trade war moved into joke territory, and China keeps the market waiting on stimulus, the iron ore price has barely blinked. It is still fetching about $US100 a tonne.
That’s great news for Australia’s budget, iron ore miners and investors, but you have to question whether it is sustainable. It would be good for all of us if it was, but big global investors are betting it is not.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
