Daily iron ore price update (sell the rallies)

Advertisement

Iron ore prices for January 28, 2020:

Spot down. Paper down. Steel OK. I’m going to call it today: the peak is in. In short:

  • so far, La Nina disruptions have been minimal but this remains the biggest upside price risk;
  • Chinese inventories are still low but there appears limited appetite to restock further with prices so high;
  • the CCP has squashed Dalian volumes;
  • supply is steadily returning with FMG, BHP, Samarco and Vale all pumping to the tune of 70mt more than at the 2019 bottom.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.