Daily iron ore price update (quick and violent)

Friday, 14 January 2022

The ferrous complex flamed out on January 13, 2022 as Chinese property hit the kids:

Is that it? Who knows! What we can observe is that the recent bullish hysteria will have nicely bloated the holdings of speculators and steel mills even as the demand outlook doesn’t improve at all and we head into both a major output stall coinciding with the Winter Olympics plus the resumption of 120mt of idled scrap steel production equivalent to 20% of Chinese iron ore demand.

Be warned that when this bear market rally turns south, it will do so quickly and violently.

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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.