Daily iron ore price update (divergence)

David Llewellyn-Smith

Friday, 28 June 2013

Find below the iron ore price table for June 27, 2013:

Some strength returned to iron ore and swaps clearly:

But rebar has slumped below last year’s low now and shows no sign of reversing:

Probably not as inconsistent as it appears. The iron ore restock likely persists, as does weak Chinese steel fundamentals. Expect the trading range to persist for a while yet with upside potential for iron ore as some credit crunch worries lift.

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.