Daily iron ore price update ("nightmarish")

Iron ore price charts for May 4, 2017:

Tianjin benchmark crashed -6% to $63.40. DCE futures crashed another -6% overnight. They’ll surely be limit down again today. Coking coal spot is crashing as well, now down to $234. Futures are screaming ahead, already at my year end target of $120 (once you remove 20% for taxes and charges). Thermal is deflating. Steel has barely budged. Chinese steel mill margins have exploded upwards as input prices crash ahead of steel. This can’t last. Mills are overproducing like mad and steel is going to crash as well.

I could go on and on here but I’ll leave today’s assessment to Axoim Capital who sums it pretty 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.

Daily iron ore price update (“nightmarish”)