Daily iron ore price update (steel deluge)

Wednesday, 23 May 2018

Tianjin benchmark fell 40 cents to $64.50. Paper was stable overnight. Steel is breaking down. And is it any wonder with the deluge of output apparent in early May CISA data at new all-time highs of 1.94mt/per day!

We usually get a summer dip for output as demand wanes but not so far. This is not good for the price outlook. From Reuters:

Steel inventory at steel mills also climbed in the same period, adding 1.17 million tonnes to 13.61 million tonnes, CISA data showed, suggesting lukewarm demand from downstream sectors.

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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.