Daily iron ore price update (do not adjust your TV)

Tuesday 18 August 2020

Iron ore prices for August 18, 2020:

Do not adjust your TV. Spot is approaching my $130 target and I may have been too bearish. Paper to the moon. Rebar too. I suspect coking coal is being destocked in a desperate bid to sustain steel mill profitability.

This still has a month or so to run before seasonality weighs. The key is low inventories in China which are restocking:

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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.