Daily iron ore price update (mad!)

David Llewellyn-Smith

Thursday 10 November 2016

Iron ore charts for November 9, 2016:

Tianjin benchmark rocketed 4.7% to $71.00. Paper is limit up successive days on the longest winning run ever. Rebar is slowing. Coking coal futures have plowed straight through authorities tightening. Thermal coal appears to have topped. Steel mill profitability is at new lows. SPI futures are projecting BHP up 10%.

Make no mistake, this is not normal. This is a screaming bubble dislocated completely from market fundamentals. What’s more, it is driven by the coking coal shortage and a falling CNY, plus, with and a La Nina in progress for Q1, there is no reason for it to stop.

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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.