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Iron ore charts for April 6, 2016:
Spot soft with Tianjin benchmark -0.4% to $53.80. Paper soft. Rebar broke out. So long as steel prices rise there is hope for iron ore to not fall (forget rising with Pilbara and non-traditional suppliers back).
The rebar rally is suggesting some better end-user demand but it is also very likely artificial to the extent that it is part stock build especially in the run up to the Tangshan flower show shut down. If that proves true then steel prices will roll over in May.
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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.
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