Daily iron ore price update (dead cat)

Find below the iron ore price table for June 3, 2013:

Rebar futures also jumped on the day. Both seemed to have gotten a lift from the weekend China PMI.

I hope this is the bottom but I have my doubts. Until rebar finds a bottom I find it hard to believe that iron ore will. The rationalisation of steel is unlikely to have ended given it’s looking increasingly structural and yesterday’s steel PMI improved but not enough.

Mind you, the steel guys are probably passing through their darkest hour. Prices should recover as production is taken offline and just in time for the second half iron ore supply deluge to send that input cost lower again, improving margins.

Share

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.