Daily iron ore price update (Banana Man)

David Llewellyn-Smith

Monday, 27 November 2017

Tianjin benchmark rose $1.30 to $67.80. Paper kept marching higher Friday night. Coking coal is mad. Steel is giving off a few little warnings, stalled. CISA output in early November was up a little to 1.8mt per day and does not appear overly impacted by shutdowns.

Most of the global iron ore cost curve is in the money now. All of the coking coal is. The latter is at prices that could trigger waves of supply. None of this is necessary from a fundamental perspective. On the contrary.

But Banana Man (the Chinese retail speculator) is in control for now so we’ve probably got further to run as inventories climb.

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.