Daily iron ore price update (capitulation?)

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Find below the iron ore price table for June 24, 2013:

Capture

Rebar futures fell as well.

I’m still not convinced our little rally is over. If it’s a restock that supporting demand, even a limited one, we should expect it to run a month or so, not one week. Then again, given the deteriorating context, iron ore is still holding in very well. In the past, credit crunches have triggered price collapses. So we can probably best see the market as under two unusually strong opposing forces. With a restock preventing a rout and a credit crunch preventing a larger restock spike.

My best guess then is that we continue to bounce around between $110 and $120 for the next few weeks.

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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.