Daily iron ore price update (steel boom!)

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Iron ore price charts for July 13, 2017:

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Tianjin benchmark added 40 cents to $65.70. Paper fell sharply overnight. Steel is firm. CISA production for mid-June boomed to 1.866mt per day, easily an all-time record.

This last data point is driven more by reform of the steel market than it is underlying demand (which is still solid). The closure of 120mt of illegal induction furnace output has shifted some 40-60mt into official statistics. The red line I’ve added is representative of what output from blast furnaces would look like without the reforms.

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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.