Daily iron ore price update (all noise, no signal)

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Iron ore prices for September 6, 2018:

Spot jumped. Paper more. Steel too. Port inventories are falling at a good clip down to 149.2mt.

The iron ore market used to so pure. Today it is all noise and no signal. It’s obvious that steel demand is falling away, that there’s plenty of inventory, that mills are destocking raw materials, big miners are getting smashed, yet Dalian reacts to the slightest news on irrelevant supply rationalisations and Chinese stimulus like a cat on a hot tin roof.

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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.