Daily iron ore price update (Dalian pin)

Spot eased. Paper was bashed Friday night. Steel is going nowhere, a standing warning for the bubble. The charts for June 14, 2019:

Reuters has more:

China’s Dalian Commodity Exchange said on Friday that it would raise trading limits and margins for the iron ore futures contract for September delivery , effective from June 18.

Trading limits will increase to 8% from current 6%, while trading margins will go up to 10% from 8%.

Expect this to continue. Dalian is trying but so far failing to pop the bubble. The AFR is bust trying to justify it:

Investors can still get volume growth out of diversified mining companies, says BlackRock’s Evy Hambro, even if big miners’ export growth is slowing and most of their expansion projects are incremental.

Mr Hambro, who manages the world’s biggest mining funds at BlackRock, said the investment community had “completely lost sight” of the “extraordinary” volume growth being delivered on a per share basis through the big miners’ share buyback programs.

…”Some investors we talk to say that, in the past, the diversified miners had growth, and today they don’t have volume growth so the multiples should be lower. Whilst I agree that they aren’t growing tonnage as fast they did in the past, they are actually growing tonnage exposure per share faster today than they were in the past because they are reducing their share count,” he said.

Meh. This is now a bubble and it will burst with the return of Vale supply, including miner’s share prices. That such “permanently high plateau” style arguments are now appearing suggest firmly that that is not far distant.

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