Daily iron ore price update (property problem) (members)

David Llewellyn-Smith

Tuesday, 22 July 2014

Here are the iron ore charts for July 21st, 2014:

Paper markets have broken down. Rebar futures especially have choked. Physical is not much better. Spot is falling, port stocks rose slightly on the week and are rock solid, and the BDI cape fell another 3%+ to only 20 points above its post-GFC low.

We are signalling a renewed destocking here on two factors. The property slowdown is not under control and we’ve entered the Q3 seasonal construction slowdown. Texture from Reuters:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.