Iron ore futures hit as Chinese houses deflate

Friday, 18 July 2014

Chinese markets are open and Dalian iron ore futures are taking a shellacking, down 1.5% to 700 yuan. Rebar futures are likewise off 1.2%. Local miners are following. Chinese new home prices are out and fell for the second month:

All June new home prices -o.5% month on month, May was -0.2%
All June new home prices 4.2% year on year, May was 5.6%
New home prices fell month on month in 55 cities versus 35 in May
June Beijing new home prices 6.4% year on year, May was 7.7%
Shanghai new home prices 7% year on year, May was 9.6 pct

In short, new home price falls are still accelerating.

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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.