Charts that make you go 'hmmm' about the iron ore rally

If you think that the iron ore crash is over then think again. Courtesy of UBS come a few charts that show the rollover is inevitable. First, China’s crude steel production trend and exports:

The big steel production rollover is upon us and exports are topping out as well ensuring that future over-production can only go to price.

Iron ore imports are also looking quite toppy (despite a good December on restocking) and local Chinese production is proving quite resilient:

And the key driver of it all keeps on sinking:

As a bonus here are also the coal doom charts:

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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.

Charts that make you go ‘hmmm’ about the iron ore rally