Daily iron ore price update (snap back)

Here are the iron ore charts for July 9, 2015:

Qingdao was up 9.9% and Tianjin benchmark rose $4.20, or 9.5%, to $48.30 a tonne yesterday. So, the snap back was largish! Singapore 12 month swaps did some repairs as did Dalian which is up 5 points overnight to yesterday’s highs of 468. Whether that indicates anything for spot who knows right now? Rebar didn’t recover any of the losses and CISA fast data for the last ten days of June showed a 1.7% slide in steel output which is your pointer to what’s really important in this fog.

So where does that leave us? I suggest you look straight through the volatility to the fundamentals which clearly suck. As such, I see this week’s action as a harbinger for price levels ahead. And lower before the year is 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.