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Friday, 5 March 2021

WA to boom on iron ore

Gold (and ore) in them thar hills...

Underscoring the point I was making yesterday, Australia's exports had already rebounded to $40 billion by January, with much more to come in February and beyond.

And with imports remaining very soft, the international trade surplus ballooned to by far the widest level on record at above $10 billion in the first month of 2021.

I was a bit ambivalent when folks said we were 'too leveraged to iron ore' back in the resources boom years, but January's figures were an eye-opener in this regard!

With coal and gas fading away, iron ore and gold are running the entire show right now,...or, at least, until January they were. 

International tourism continues to get annihilated, and one assumes that the aviation chiefs are busily negotiating a bailout to ensure that massive executive remuneration keeps flowing (capitalist without the downsides - nice work if you can get it). 

With a monster stimulus in place, domestic tourism has filled the breach, and indeed the combination of the iron ore boom and all those dollars being trapped at home has kept the Aussie dollar trading at a remarkably high level, all things considered. 

All of the pieces of the puzzle appear to be lining up for a Perth property boom this year. 

Iron oresome for Western Australia.