Daily iron ore price update (steel rocket, iron char)

Tuesday, 30 March 2021

The ferrous complex lifted aggressively yesterday as green restrictions on steel output rocket prices higher. Iron ore had a better day but China aims for it to be the charred remain left behind. Will it succeed?

Morgan Stanley tackles the question:

Summary view: China’s steel production cuts are positive for global steel prices, but will pile pressure on the still elevated iron ore price. Our forecast implies downside to forward iron ore prices. We expect high-grade 65% Fe ore to outperform lower quality ore. Strong ex-China steel production should push met-coal higher.

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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.