Daily iron ore price update (V is for Dalian)

Monday, 3 November 2014

Here are the iron ore charts for October 31, 2014:

Paper markets were weak again. I’ve switched now to the Dalian May contract, hence the big fall. It is still pricing $68. Physical followed. I still expect new 2014 lows in the next fortnight as the Hebei shutdown takes a hold. Reuters has texture:

October is normally a strong month for the steel sector in China, but a combination of weakening economic growth and massive industrial overcapacity has driven product prices down to multi-year lows. Buyers remain cautious about making any big iron ore purchases.

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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.