The absence of a dedicated iron ore ETF has caused commodity-oriented traders some consternation when iron prices are soaring, and relief in the opposite scenario. But those looking for a way to trade the iron mining industry have a few more options.
If you thought metal prices — and iron ore in particular — were still all about China, you would be right. However, Brazilian monetary policy can make the difference between a profitable miner and one to avoid.
Australia is the ultimate commodity-driven country, with a greater emphasis on natural resources for export than Canada or even gold-rich South Africa. This is why the Australian currency is considered the ultimate risk trade, and thanks to the new tone on China the Aussie rally has started looking long in the tooth.
Australia is projecting that iron ore exports in 2011/2012 will hit a record 473 million tons, up from a previous estimate of 460 million tons, signaling increased confidence that demand from China will remain strong despite that country’s weaker growth forecasts. Mining stocks, however, retreated.