Daily iron ore price update (Vale war)

David Llewellyn-Smith

Monday 23 May 2016

Iron ore chart for May 20, 2016:

Tianjin benchmark was unchanged at $55.70. However, Dalian futures were pole-axed -5.6% Friday night as weekly port data keeps rising up another 1.6mt to 10.45mt. There’s more of that ahead. Rebar average resumed softening. The steel iron ore spreads has fallen back but is still in reasonable range.

The second half is shaping as a disaster. We’ve now added roughly 100mt of supply since the nadir late last year:

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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.