Daily iron ore price update (40-handle)

David Llewellyn-Smith

Thursday, 2 April 2015

Here are the iron ore charts for April 1, 2015:

There go the fifties. They were neither a good nor a long time. Benchmark Tianjin iron ore is this morning trading at $49 down 3.9% and Qingdao spot is at $49.53 down 3.5%. But those moves are secondary today to the forward curve. 12 month swaps are finally seeing the truth, that the iron ore glut is going to destroy the price for years to come. Dalian closed at 395 but it’s fallen again overnight to 387, strongly suggesting more spot carnage tomorrow morning.

Reuters has texture:

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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.