RBC: Iron ore crash ahead

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Via RBC:

The Chinese economy has stayed resilient through the first months of 2018, but the combination of an expected cyclical slowdown, increasingly challenging monetary conditions and increasing risks of tariffs to the wider economy points to a slowdown in Chinese steel demand in the second half of the year.

We see a near-term destocking cycle placing further pressure on iron ore prices as likely in the near term.

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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.