Iron ore prices for October 39, 2020:
Spot up but paper down overnight. Steel has rallied in recent weeks so some pressure has come off the seasonal destocking.
Empties have rebounded strongly now:
The Chinese PMI was solid, driven, as usual, by construction:
I will have the more granular steel PMI data tomorrow.
So, we’re probably almost past the dangerous destocking period and looking into the new year restock. That said, all markets looks vulnerable to more weakness so I can’t see iron ore flying off, especially as Vale brings back the sales volumes.
We’ll need to see heavy La Nina rains in Brazil to give any new leg up in prices in Q1, which is a chance.
By Q2, I expect to be headed for $80 and in 2021, H2.
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.
- Quad gathers to counter China - March 9, 2021
- What macroprudential will APRA do? - March 9, 2021
- Afterpay bubble bursts - March 9, 2021
YOU MAY ALSO BE INTERESTED IN
Daily iron ore price update (inventories)
The iron ore complex sank on March 8, 2020 as a
Why does everyone hate Fortescue Metals?
JPM has a look fundie mining holdings today: The
Daily iron ore price update (market stalemate)
Iron ore fell on March 5, 2021 along with the
Daily iron ore price update (not much)
Iron ore prices fell on March 4, 2021 as the