China, Iron Ore and Australia

It’s easy to lose sight of the rest of the planet with all the talk of trade war between the US and China. The quick summary here is that China and Australia have been having some disagreements of their own. Australia called for an independent probe into the origins of the coronavirus. This did not sit well with China, and now they are strongly contemplating finding alternative sources for their Iron Ore.

For those unfamiliar, China imports 60% (yes, six-zero percent) of their Iron Ore from Australia, and 20% from Brazil.

https://s.yimg.com/ny/api/res/1.2/WIjpMpvpSXz_Sn_08ZalHw--~A/YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9MTI4MDtoPTk2MA--/https://media.zenfs.com/en/bloomberg_markets_842/6227ce3871a69163388f1de62a327689

Brazil has had supply issues of it’s own (because of… *drumroll*… that’s right, coronavirus). That’s the other 20% right there.

This is likely a bullish signal for Iron Ore. Iron Ore has already been on a tear, but pulled back slightly recently…

https://www.tradingview.com/x/85pwi9wW/

…will this be the catalyst to raise the price above resistance?

Source of the pie chart.

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