Daily iron ore price update (Biden rally)

Iron ore prices for November 6, 2020:

Spot firm. Paper jumped Friday night, presumably on the Biden win, which makes little sense. Rebar is strong. October imports were also strong at 106mt and change.

On the US election result, if Biden eases up on China tariffs then that will be bearish for iron ore at the margin given it will decrease the need for stimulus at the margin but the major driver, for now, is the monetary tailwind of a falling DXY.

Looking ahead, scrap details are emerging:

It’s nowhere near big enough to break the Pilbara cartel but it all helps.

David Llewellyn-Smith