Daily iron ore price update (glowing short)

The spot price crawled higher. Paper sold off. Steel isn’t going anywhere. In news, China is hammering speculators via Dalian price hikes, at Reuters:

* China’s Dalian Commodity Exchange (DCE) said it will raise transaction fees for all iron ore futures contracts to 0.01% from 0.006% of the trading value, starting July 18, the bourse said in a statement on Tuesday

* DCE also adjusted intra-day transaction fees for the September-delivery contract to 0.025%, while non-intraday trading transaction fees stay at 0.01%

* For the January-delivery contract, intra-day transaction fees will be 0.015%, the DCE said.

This is the third hike in a month. Also at Reuters:

China’s government promised it will keep “order” on the iron ore market at a meeting last week with the country’s steel producers who complained about record-high prices, according to a source who attended the meeting.

Chinese authorities are going to pop the bubble. To the charts:

The Baltic Dry continues to tear the roof off as well as new volumes pour out of Brazil:

These volumes are going to arrive just in time for the traditional Q3 Chinese demand slowdown.

This market is now a glowing short.

David Llewellyn-Smith
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