Daily iron ore price update (port build)

Iron ore price charts for October 31, 2016:

The spot rip continues with Tianjin benchmark up 1.1% to $63.80 though it is now lagging SGX and the DCE paper breakout. All charts are bullish. Steel is unable to follow at the same pace. Coal stalled. Iron ore port stocks are the tell on what’s happening, rising another 995kt tonnes last week to 106.75mt. Recent hot price action is enough to keep inventories rising for another 2-3 weeks so we are going to challenge all-time inventory highs here.

Despite the heat, my outlook is unchanged. This rally will end when it’s ready and not before. But beyond that, prospects are dimming not improving as Chinese top tier housing markets stall, more supply warms up and inventories climb and climb.

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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.