Daily iron ore price update (reek of capitulation)

Tuesday, 7 July 2015

Here are the iron ore charts for July 6, 2015:

Qingdao iron ore crashed 5.4% to $52.28. Tianjin benchmark fell 3.9% to $52. 12 month swaps are a few cents from all time lows. Dalian was limit down yesterday and is already overnight limit down for the day ahead at 380. Rebar is fucked.

As expected then. The trader bottleneck has been loosed and the deluge is running. This reeks of capitulation and given the backdrop of rising panic in China we could well see a straight line dump into the $30s right now. Once price gapping starts in iron ore it tends to run until everyone is flushed out.

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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.