Daily iron ore price update (weak)

Here are the iron ore charts for October 1st, 2015:

More bad data. Despite Chinese markets being closed and the hopeful tone in global markets, Qingdao iron ore fell (benchmark was up 0.1%), paper markets barely budged and coal is looking ill, which won’t help Glencore when equities finally get over their short squeeze. At least Chinese steel production rebounded in mid September post-parade but falling rebar tells you that that can’t last. Indeed, I’m looking for a 2011 or 2013 style of year end as mills cut production to repair ruined margins. That will mean no iron ore restocking and perhaps the opposite.

The final quarter of 2015 is not looking good for the bulk commodities.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

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.