Daily iron ore price update (out of puff?)

David Llewellyn-Smith

Sunday 21 July 2013

Find below the iron ore price table for July 19, 2013:

And the chart:

Rebar average continues to come off the bottom:

Futures were up slightly too. The spread charts are definitely stretched now for spot/swap:

A 5-10% correction here would be quite normal. Spot/rebar also remains stretched, more like 20% here:

Has this move run out of puff? Maybe, I don’t see what incentive steel mills have to push this higher, though the roll-over is not yet convincing and traders might.

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.