Daily iron ore price update (PBOC fizzer)

Here are the iron ore charts for June 29, 2015:

1 2 3 4

Qingdao spot continued to weaken and its chart is forming a pretty decent head and shoulders top pattern. Tianjin benchmark is down 20 cents at $60.30. Singapore is still going sideways but may be threatening to break down. Dalian held up OK yesterday but was smashed 10 points overnight to 423. It’s a PBOC fizzer.

Platts has texture:

Chinese steel markets fell Monday, finding no immediate support from the central bank’s fourth interest rate cut since November.

…”I don’t think the rate cuts will help steel markets at all, and as long as mills resist production cuts, steel prices will continue to fall,” said a Shanghai-based trader.

…A trader in Beijing said that while the latest bank reserve ratio requirement cut would release several hundred billion yuan in liquidity, he doubted it would be channeled to the steel or downstream manufacturing sectors.

He’d be right! The iron ore market is weakening fast.

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