Daily iron ore price update (top)

David Llewellyn-Smith

Friday, 8 May 2015

Here are the iron ore charts for May 7, 2015:

Prices pulled back as expected though Tianjin benchmark only fell marginally to $60 even. But other markets are signalling a more decisive top. Singapore 12 month swaps are not interested in going higher. Dalian 6 month futures were soft yesterday but weaker still overnight down another 8 points to 430. Rebar average broke lower and is only 1% above an all time low. If that goes, steel is telegraphing the next iron ore down leg.

My view remains that there is more wood to chop as mills restock but clearly $60 is the ceiling. 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.