Daily iron ore price update (jaw dropper)

Iron ore price charts for November 11, 2016:

Tianjin spot is…what it is at $79.70. Futures are…what they are. Coking coal futures got pretty heated again as well. Thermal coal has topped and will sink from here. Port stocks fell nearly 1mt last week, I’d guess because mills are desperate to buy from anywhere but the seaborne market. Steel added more but is being blown away by iron ore which had its best week ever, rising 23%. Mill margins have collapsed to boom lows.

Australia’s terms of trade thus rose 8 points last week alone and the past three quarters is roughly the equivalent of the entire 1970s Japanese iron ore boom:

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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.