Commonwealth Bank has issued a bearish warning on the outlook for iron ore, saying that China will increasingly wean itself off Australia’s key export if the United States pushes Canberra to weaponise its dominance on the global market.
The lender noted that iron ore was China’s largest trade vulnerability, given Australia provided roughly 60 per cent of the country’s imports of the key steelmaking ingredient. And with Australia accounting for over half of the world’s iron ore exports, alternative supply is limited.
