Daily iron ore price update (equilibrium)

David Llewellyn-Smith

Tuesday, 17 July 2018

Tianjin benchmark fell 50 cents to $63. Everything is more or less in equilibrium. Port stocks were flat on the week.

Can the equilibrium hold? I don’t think so. Infrastructure is plummeting:

It’s being offset by a bounce in realty and exports but for how long as credit tightens? By year end I expect the balance will have shifted to oversupply as demand wanes and supply keeps coming.

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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.