Supply discipline already evident: There are several indications to suggest Chinese domestic mines are shutting, namely recent price stabilization, trader commentary, and anecdotal evidence via our channel checks. Also notable is the first non-China output curtailment – North land Resources announced on June 30 that it will lower its expansion plans at its Swedish assets in response to weaker iron ore prices.
That’s one lousy year to date and the evidence of mine closures is not very strong. Dalian futures up a little today but rebar down. Miners are selling again anyway.
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.
