Why iron ore is crashing

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This morning, David Llewellyn-Smith on the Treasury of Common Sense from 2GB on why iron ore is crashing.

In short, the Chinese property crash continues unabated. Its growth period is over. Steel demand must fall. And iron ore will adjust to a new normal of much lower volumes of Chinese construction over the next decade.

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.