Daily iron ore price update (crash)

Thursday, 19 March 2015

Here are the iron ore charts for March 18, 2015:

Crash time. Spot was routed, especially Tianjin benchmark which crashed $3.1 or 5.4% to $54.50 a tonne. Dalian spent much of the day limit down and is currently 3 points below the close at 438. 12 month swaps are on the highway to Hell. Reality is setting in for the iron ore market and it ain’t pretty. Texture from Reuters:

Chinese steel mills, already struggling with chronic overcapacity and slower demand growth as the world’s No. 2 economy loses momentum, are faced with rising environmental compliance costs as Beijing aims to improve air quality.

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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.