Daily iron ore price update (port crash)

Monday, 18 May 2015

Here are the iron ore price charts for May 18, 2015:

Spot was down sharply. Paper was better and Dalian is up 4 points this morning at 426. Rebar average has broken to an all time low. Chinese port inventories were monstered another 3.5 million tonneson the week.

My best guess is that port stocks lag reality by a month or so and what we are seeing here is the draw down that crashed the price in April. Bear in mind that that’s a guess and this will nonetheless be bullish for sentiment if nothing else.

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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.