Daily iron ore price update (short squeeze)

Tuesday, 3 April 2018

Iron ore prices for April 2, 2018:

Tianjin benchmark lifted $2.30 to $65.40 over Easter. Paper was strong overnight. Steel isn’t. Chinese iron ore port stocks climbed again to 161.68mt. That we’ve shed 20% in price while these stocks have risen to new highs tells you that speculators are yet to even begin selling and when they do, and the great destock commences, prices will sink to dramatic lows.

The bear market rally was triggered by minor new output cuts in Handan that are irrelevant.

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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.