Daily iron ore price update (doooown)

Wednesday, 1 June 2016

Iron ore charts for May 31, 2016:

Tianjin benchmark fell 1.4% to $49.60. Dalian was up yesterday so that is a bad sign. It fell again overnight. Rebar average has not found a bottom. Honestly, at this point there really is no end in sight. I do not expect a big destock yet and price erosion is the base case but by the time we get to the third quarter destocking we could already be near $40. We’re almost certain to break new lows this year and the $20-handle is a good target.

For BHP, the news just got worse:

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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.