Daily iron ore price update (the smoking gun)

David Llewellyn-Smith

Monday, 24 October 2016

Iron ore price for October 21, 2015:

Tianjin benchmark was unchanged at $58.40. Paper was stable overnight. Rebar peaked. Chinese port inventories added 1mt last week and is right at year highs of 105.8mt.

The last point is the key to recent strong prices. In the past three weeks ports have added 1mt per week, an annualised rate of hoarding of 50mt. Not until this pulse fades will prices fall but when it does reverse it will take 100mt of demand out of the market overnight.

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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.