Daily iron ore price update (FMG’s dead canary)

David Llewellyn-Smith

Monday, 6 June 2016

Iron ore charts for June 3, 2016:

Tianjin spot jumped 3.2% to $49.50 a tonne. Paper firmed too. Rebar average has no bottom and the steel mill profitability index suggests it won’t find one because there is still money to be made by over-producing. Chinese port stocks fell 400kt last week and there is a good change the restock is done. The snap back to $50 will raise hopes that it is the new marginal cost floor but this looks to me like only a pause in the selling.

The AFR tells you all you need to know about where prices are headed:

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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.