Daily iron ore price update (rebaaarrrr)

Tuesday, 19 May 2015

Here are the iron ore price charts for May 18, 2015:

Qingdao spot was weak but Tianjin benchmark was even weaker down 3.2% to $59. This despite the Dalian bounce, though it has weakened again overnight and is now at 419. Singapore is trading sideways and rebar average plumbing new depths of Hell signaling weak demand and further price pressure for iron ore.

The rally is certainly done. I’m not convinced we don’t have more wood to chop before we really crack lower but the building Chinese stimulus is doing nothing to support the market and neither is Twiggy pulling strings in Australia. Price erosion still seems the base case.

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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.