Daily iron ore price update (the bubble blowoff)

Tuesday, 2 July 2019

Spot to the moon. Paper to the moon. Steel to the moon. Chinese steel output restrictions have juiced another leg in the bubble. The trade war truce is aiding sentiment too. We can tell it’s all froth from the simple fact that both will lower iron ore demand! The charts:

And a few more. First, Chinese port inventories fell to 115.25mt last week as the supply squeeze continues:

Second, the Chinese steel PMI slumped to 48.2, painting a pretty ordinary picture for demand:

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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.