Daily iron ore price update (OBOR?)

David Llewellyn-Smith

Tuesday, 12 June 2018

Iron ore prices for June 8, 2018:

Tianjin benchmark lifted 60 cents to $65.70. Paper is flat. Steel is flat. Port stocks fell a bit to 161mt last week. Rebar draw downs are slowing at 5.03mt as output booms.

It’s a sector still in rude health despite slowing Chinese output. I have two ideas for why. First, the post-Winter shutdown pent-up demand rubber band is still snapping back. Second, Chinese steel exports have taken off in recent months despite still high prices and trade tariffs which is quite unusual:

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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.