Daily iron ore price update (historic adjustment)

Texture from Reuters:

“We could see further weakness,” said analyst Edward Meir, commodity consultant at brokerage INTL FCStone in London.

“The gains we saw … seem to be just a short-lived technical bounce, as a sense of unease still seems to linger over a number of markets ahead of the September 1st U.S. tariff imposition on the next tranche of Chinese exports,” he said.

Yep. Overnight futures closed before the trade fireworks so I’m not sure how fr the bounce can get. To the charts:

It is my view that the intensifying trade war signals the end of China’s growth period. It can simulate now and again but it will be going ex-growth as it does so.

Bulk commodity prices are in for an historic reversion to mean over the next few years.

Houses and Holes

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 fouding 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.

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