![]() For those that secure debt, well, the future is bleak or, at least, Chinese. All asstes have been grossly overvalued during the boom and will need to be deflated. Although resulting in part from very poor execution, the writedown is a signal of what’s to come for all other producers, first high cost and then low. No end in site to Sino’s unprofitable expansion which has another 20 million tonnes to go in the next two years. Mr Chang described the latest provision for Sino Iron as “sufficient” and said Citic would continue to build out its iron ore business.Īsked if Sino Iron would eventually prove a lucrative investment, he pointed out the mine, which is four years behind schedule, was a long-term project spanning 30 to 40 years. The big new today is another Sino Iron writedown at CITIC, from The Age:Ī move into Australian iron ore continues to haunt Hong Kong-listed company Citic, which has confirmed a $US2.5 billion ($3.2 billion) impairment on the book value of its Sino Iron operation in Western Australia.Ĭontinuing the run of write-downs that has hit the Australian iron ore industry in 2015, the size of the impairment was bigger than the $US1.8 billion that Citic had warned of in January. I hesitate to say that the rally is done already but I can’t see it getting very far. Paper is mixed and rebar average rolling, though futures are still firm. Qingdao and Tianjin benchmark up strongly as expected, the latter to to $55.60 a tonne, up 2.6%.
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