Daily iron ore price update (new low)

Wednesday, 25 November 2015

Here are the iron ore charts for November 24, 2015:

Spot smashed with Tianjin benchmark down 1.8% to a ten year low of $43.40. Paper mixed with Dalian rebounding overnight. Rebar is being hammered out of existence.

I do not trust the Dalian rebound. With the January and May contracts in flux it is not clear what spot is pricing off. I see more downside here yet. These big moves tend only to end in some kind of wild capitulation. My guess is we need to break into the $30s before rebounding.

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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.