Daily iron ore price update (falls)

Here’s the iron ore price table for December 17, 2013:

iron ore price

Rebar futures were also hit. Here’s Dalian six month futures, which are still trading around $120 equivalent:

dalian iron or futures

The key level to watch is $131. Spot has not traded below that since July. If we break through, it’ll likely portend a deeper pull back. The BDI capesize index is getting smashed but from recent highs:


I’m agnostic until $131 breaks.

David Llewellyn-Smith
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  1. Today’s house price index shows prices still growing year on year, but decelerating rapidly and could soon stall. Most importantly big difference between Tier 1/2 cities and the rest. Many of the smaller markets are actually deflating on monthly basis. Dilemma for developers: land in tier 1 cities very expensive and difficult to acquire, while little demand elsewhere. The game may be drawing to a close soon.

      • Hot money is following hot money into any city in the world that fits the definition of a global metropolis. Outside these few “tier 1 cities”, not so much, but they do have a way of distorting the overall picture – e.g. look at London vs rest of UK.

        From today’s China data 9 out of 70 cities show negative real month to month price growth for new housing stock and 24 out of 70 show negative real price change for existing houses. Slowing trend indicates next month likely to be worse.