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Iron ore charts for August 14, 2016:
Tianjin benchmark was firm up 60 cents to $60.20. Dalian was flogged -3.5% Friday night and I’ve switched to the January contract as well which accounts for the big fall. It’s forecasting around $48 at this point. Rebar is firm. Chinese port stocks fell for the second week, another 300k tonnes.
Whether or not the stock build is over at this point we shall see. If so then prices are going to weaken in the months ahead. It remains my view that that is coming anyway as the Chinese stimulus runs out of puff and seasonal weakness takes over as well.
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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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