Groundhog day for iron ore

About the author:

Author name:

By Tom Sartor

Job title:

Senior Analyst

Date posted:

11 March 2014, 2:02 PM

Sectors Covered:

Junior (Emerging) Resources, Bulk Materials

Iron ore equities have hit an air pocket...again. Physical market indicators have been seasonally weak suggesting that short term price volatility shouldn't surprise.

The fact remains that fundamentals in China haven't radically changed, but investors are increasingly nervous such that equity volatility currently has a hair trigger. We've seen this many times through 'the cycle' and don't think that portfolio investors need to panic.

Assertive investors may trade the dips. We retain our preference for BHP over RIO and will watch Fortescue (FMG) closely for a buying opportunity.

If you are interested in finding out more please contact your nearest Morgans office.

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