Chinese iron stockpiles at a 4-year high

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China has 80.1 million tons of  iron  ore sitting in port warehouses waiting to be used. This is up 1.9% from last week, so the stockpile is only getting bigger.

Given the fact that China produces about 45% of all global steel, the fact that local steel mills have started hoarding  iron  does not bode well for their margins in the near term.

Reportedly, management is terrified that another round of flooding in Australia will disrupt  iron mining there. Even a cyclone could interrupt shipping between Australia and Chinese ports.

If iron is in such short supply, the steel names are an obvious short. Unlikely to get much better from here for the foreseeable future. Start with  MT  (quote) and consider  PKX  (quote).

Trading the Globe: China Checking

China’s IDCBY has bought a U.S. retail bank. More cross-border deals are likely as emerging financial giants take the global stage.

Watch the line between multinational and local emerging markets  banks  get even blurrier as deals like this keep the M&A fires burning.

Russia’s Sberbank (SBRBFquote) may try something similar to what  IDCBY  (quote) is doing.

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities , International , Stocks

Referenced Stocks: MT, PKX , SBRBF, IDCBY

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