Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Thursday, 8 September 2016

Razor's edge

Game theory

Some news to put the rebound in Australia's index of commodity prices on the back foot.

With Gina Rinehart's (Hancock Prospecting) Roy Hill project now hitting its straps, there was record monthly throughput again at Port Hedland in August of 43.5Mt (+9 per cent from a year ago).

And record iron ore cargo was shipped again in August of 42.875Mt (also +9 per cent year-on-year) as China continues to import unprecedented volumes of red dirt.

35.4Mt of that iron ore cargo was bound for China in August, the highest monthly volume to date.

The Port of Port Hedland has seen 461.2Mt of iron ore shipped over the past year - also a record, of course.

The Port of Dampier achieved monthly throughput of 14.8Mt, for a +10 per cent year-on-year increase.

Extraordinary figures across the board.

MOAR ore

The Pilbara deposit is one of those phenomena that pretty charts don't really do justice to - the sheer scale of operations has to be seen to be believed.

I was actually working in the mining industry when I first visited the region, but the scale of the place comfortably dwarfed anything I could have imagined.

After all it's more or less impossible to imagine a million tonnes of anything, let alone 460 times that amount.

It was thought in 2011 that by the end of the decade total production in the Pilbara could reach 1,000 million tonnes per year, largely accounted for by BHP Billiton, Rio Tinto, and Fortescue Metals Group.

To put that in perspective when Britain was still the workshop of the world its total annual coal production peaked at 287 million tonnes.

The wrap

More record iron ore production from the low-cost miners.

If these figures don't force iron ore prices lower by the end of the year as stockpiles swell, nothing will!