Diggers & dealers might provide some optimism

Diggers & dealers might provide some optimism

The surge in the iron ore spot price has been the feature of the past week, reaching a price of US$74 pt on Tuesday. That explains why BHP, Fortescue and RIO have all moved higher. Apparently the Chinese steel mills are making so much money that they are happy to pay higher prices for quality iron ore imports. The long awaited collapse of Chinese growth is not materialising, so there isn’t much room for pessimism on this front. Rebar prices are actually at a four year high.
The sentiment elsewhere is continuing to improve gently. Although you might not have seen your portfolio values rise significantly since the start of July, the Sentiment Oscillator is now showing a healthy rebound. We are heading in the right direction. It will be interesting to see what the mood is like next week in Kalgoorlie, for the annual Diggers and Dealers Forum. This might well be the catalyst to get enthusiasm going again for the junior sector.