Daily iron ore price update (paper slaughter)

Thursday, 27 May 2021

The great ferrous crash continued May 26, 2020 as Beijing maintained the rage against speculators in steel and iron ore alike. Spot iron ore is unchanged which, I suspect, is an administrative error. Paper was slaughtered again yesterday and steel is printing an epic crash:

Here’s the chart:

As steel mill profits are eviscerated, expect them to destock iron ore into the end of the financial year. Thus this rout may still have further to run before we see a new bid in July/Aug.

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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.