News Wrap

IN THIS morning’s News Wrap: Abbott vows not to interfere with iron market; Alexander sees need for $US40 iron ore; and protesters condemn Arctic drilling.

Lou Caruana

Abbott vows not to interfere with iron market

Prime Minister Tony Abbott has vowed not to interfere with the iron ore market despite pushing ahead with plans to hold a controversial parliamentary inquiry into the sector, according to the Sydney Morning Herald.

The plans have not only split the mining community but appear to be dividing Abbott's own party, with several members of the cabinet, including Trade Minister Andrew Robb and Industry Minister Ian Macfarlane, having concerns about such an inquiry going ahead because of the signal it could send to the market.

Alexander sees need for $US40 iron ore

Dwight Anderson, founder of commodities hedge fund Ospraie Management, said that iron ore prices need to drop to $US40 a tonne to force high-cost producers to shut and restore a balance between global supply and demand, according to the Australian Financial Review.

“Iron ore is something where every big, major mining company in the world decided to bring a huge project on at the same time, which caused prices to fall by 65%,” Anderson said, speaking in a Bloomberg television interview with Stephanie Ruhle at the Commodity Debate conference in New York.

Protesters condemn Arctic drilling

Environmental activists in Seattle have paddled out to sea to protest a Shell oil rig moored off the coast of the US city that is headed for Arctic drilling, according to the Sydney Morning Herald.

Hundreds of kayaks, canoes, sailboats and a solar-powered barge called The People's Platform circled around Shell's massive yellow and white oil rig moored in the city's port on Saturday.