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Iron ore charts for June 29, 2016:
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Tianjin benchmark fell 0.7% to $58.80. Paper was clubbed Friday but bounced on the weak USD Friday night. Rebar is stalled. Weekly Chinese port stocks climbed another 400kt to 106.5mt.
In the past month, port stocks have risen at an annualised rate of 54.5mt. This is the smoking gun of the bubble. Recent price action suggests precisely the same ahead and a near record pile heading into seasonal weakness. Just imagine what this does to seaborne demand when it reverses, effectively removing 80-100mt of annualised demand for the period of destocking.
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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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