Daily iron ore price update (down, down…)

Wednesday, 13 March 2013

Find below the iron ore price chart for March 12, 2013:

The spreads between spot and swap, as well spot and rebar remain very wide. The spot/swap spread would historically be trading around $15 at these price levels, it’s double that. The indexed spread to rebar is even more ahistoric.

With the steel mill restock finished, Chinese data looking dodgy, real estate curbs being beefed up, urbanisation plans being refocused on “soft infrastructure” can anyone tell me why the spreads won’t revert?

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.