Daily iron ore price update (bottomless pit)

Here are the iron ore charts for December 2, 2015:

The rout rolls on with Tianjin benchmark falling another 2.4% to $40.60. Dalian six month futures are also down two points to 293. CISA steel mill output plunged 4.8% in mid-November and disturbingly that has failed to arrest the price decline suggesting that demand is falling even faster. RIO was hit for 3% in New York and BHP for 1.5%.

We’re into a bottomless pit now with everything chasing falling Chinese steel demand into the abyss and Chinese inventories high enough to prevent any mining cuts from having an effect on prices. We may be about to break into the $30s but this configuration of variables has no bottom in sight.

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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.