Daily iron ore price update (new bull market)

Here are the iron ore charts for February 15, 2016:

So, relief that China was not hit by an asteroid during CNY, combined with resurgent hope of stimulus on dreadful trade data, sent spot crazy with Tianjin benhcmark up 5.6% to $45.60. Unleash the Scutt! Let me be the first to declare a new bull market for iron ore as its rebound crosses the 20% gain threshold. Paper was also on fire and rebar up a little. That port stocks continued their ominous climb, up 1.1 million tonnes (mt) to 95.5mt, should not take away from this milestone.

Meanwhile, on planet earth, any further Chinese stimulus will only weaken the yuan and renew the crisis, the trade data was dreadful, and the restocking is now large. It’s marvelous how markets keep offering second chances!

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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.