Daily iron ore price update (new lows)

Here are the latest prices and charts pertaining to the iron ore complex. It was a bad night, with spot (Qingdao), 12 month swap, futures and steel prices (Rebar) all falling, with spot and steel prices both plumbing fresh 5-year lows:

Bloomberg provides some texture:

“The falling price this year has been far deeper than anyone anticipated,” Andrew Hodge, an analyst at Wood Mackenzie Ltd. in Sydney, said before today’s prices were released. “China has had weaker than expected demand from its own residential property sector. For the big three, they have the lowest cost operations so there’s no reason to stop producing,” he said, referring to BHP, Rio and Vale.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.