Daily iron ore price update (new high)

Iron ore prices for December 15, 2020:

Spot up. Dalian paper up to a new record high. Steel is stuck. Port inventories have started to fall as Chinese mills desperately seek to fend off prices. If it continues, this will only prolong their pain, but it does weigh on prices at the margin.

Yet not enough in my view. The underlying drivers are too strong for the next quarter or two:

  • demand good;
  • supply constrained if improving;
  • inventory pressures;
  • La Nina risks and
  • tumbling DXY.
David Llewellyn-Smith

Comments are hidden for Membership Subscribers only.