Daily iron ore price update (bear market rally)

David Llewellyn-Smith

Thursday, 22 June 2017

Iron ore price charts for June 21, 2017:

Tianjin benchmark added $1 to $55.40. Paper took off overnight. Coking coal too. Steel is stuck.

The bear market rally that has been trying and failing for two weeks finally gained a little traction. My guess is the trigger is the new liquidity management being undertaken by the PBOC and others to prevent Chinese yields getting out of hand. There is nothing in that yet to suggest a swing to more stimulus. Interbank rates are still tight and so are bond markets. Indeed the PBOC drained liquidity yesterday.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.