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Iron ore charts for July 1, 2016:
Tianjin spot fell 0.4% to $54. Dalian went nuts Friday night, presumably on hopes for moar stimulus after Friday’s deteriorating PMIs. The truth of what is happening to end user demand is better captured in the last chart as Chinese port stocks jumped another 1.15mt last week. China is restocking iron ore from already high levels and the current little spurt will send it higher still over the next month, perhaps to records. To describe this as inauspicious for prices in H2 does not really do it justice.
In news, Goldman is spreading the gloom at Bloomie:
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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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