Daily iron ore price update (to Mars)

Advertisement

The ferrous complex has shot clear of Planet Earth with spot losing its anchor. Paper was limit up plus all day yesterday but got hammered 5% last night as Chinese regulators dropped the jackboot on Dalian margin requirements. Steel is mad (note the table has several days of gains):

Gone is any concern for the usual seasonal slowdown in May. In its place is furious steel pumping as margins soar:

Advertisement

Meanwhile, iron ore supply is fine but inventories are moderate at best. Any pressure to restock will be (is being) spectacular for prices:

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.