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Here are the iron ore charts for July 24, 2015:
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Qingdao spot faded but Tianjin benchmark rose 0.2% to $50.70. Singapore 12 month swaps faded too. Dalian firmed slightly but pulled a rabbit out of the hat Friday night jumping 9 points to 389, perhaps the only commodity in the world to rise. Rebar average also jumped erasing last week’s losses. China port stocks rose a modest 200k tonnes on the week.
Despite wider commodity distress, internal dynamics for iron ore are still OK. Port stocks need to rise further to apply more pressure to spot, all things equal. Once that happens further downside opens up.
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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.