Daily iron ore price update (PMI drag)

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by Chris Becker

Here’s the latest prices with a slight uptick in spot prices, while futures are pushing higher, suggesting hope over forthcoming stimulus:

The problem for the complex is the correlation to the Chinese PMI, which dropped into contraction territory in December for the first time in over two years. And unless Chinese authorities launch substantive stimulus in the coming months and are able to thwart the ongoing trade war with Trump, the outlook for iron ore is not firm at all.

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Texture from Reuters:

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