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Iron ore price charts for June 29, 2017:
Tianjin benchmark gained 2.2% to $62.90. Paper eased overnight after surging again yesterday. Steel is stable.
Iron ore is in a short squeeze. Where it stops is anybody’s guess but I remain of the view that this is not a rerun of 2016’s commodities pain trade. Supply is glutted. Inventories are huge. The yuan is stable. And China is going to slow. The best case is a steel mill restock running for a few weeks.
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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.
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