Daily iron ore price update (PMI pain) (members)

David Llewellyn-Smith

Monday, 4 August 2014

Here are the iron ore charts for August 1, 2014:

Paper markets deteriorated across the board despite the firm Chinese PMI, a bad sign. In physical, spot eased and port stocks fell 450k tonnes but remain huge. The BDI cape dropped 1.5% and is now just 4 lousy points above a post-GFC low.

We are definitely plodding through a mild destocking and its clear enough why. The July steel PMI that was out Friday showed a marginal increase to 48.6 describing ongoing mild contraction in the sector. The Chinese non-manufacturing PMI was out over the weekend and confirmed the malaise:

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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.