Daily iron ore price update (wipe out)

Here are the iron ore price charts for July 3, 2015:

The Qingdao iron ore price fell 0.7% to $55.26. However, Tianjin benchmark tanked again $US1.70, or 3%, to $54.10. That is Bozo Joe’s forecast for the year ahead. Technicals on that chart suggest a straight line drop to the lows. 12 month swaps are weakening and Dalian fell another 8 points Friday night to 402. Just as bad, port stocks rose an impressive 2.25 million tonnes last week and have likely bottomed.

The trader’s bottleneck is broken. Chinese local iron ore output is rising. AGO is back at full production. RIO is launching its next big supply leg up. BHP, Sino and Anglo are all incrementally increasing output. Roy Hill will join them in two months. And then there is this, from Platts:

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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.