Daily iron or price update (rally)

Monday, 13 July 2015

Here are the iron ore charts for July 10, 2015:

Qingdao spot rallied 2.3% to $50.10. Tianjin benchmark ended up 3.3% to $49.90. 12 month swaps added a little and Dalian a little more with it rising another 3 points Friday night to 372. Rebar average actually added a little too. As did port iron ore stocks rising a modest 735k on the week.

The rally is clearly based in the Shanghai reversal and so long as it rises then we may have some chance of more rises in iron ore this week. But the iron ore sell off was coming anyway so I do not expect it to get far and my downside target across Q3/4 remains well into the $30s.

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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.