Daily iron ore price update (last man standing)

Friday, 18 June 2021

The ferrous complex went through some gyrations on June 17, 2021 with paper and spot markets crossing over trying to catch one another:

There’s not much else to report in the day. Broader circumstances are clearly turning hostile to high prices as China tightens and slows ahead merging with a slowing US and Fed policy error kicking off a broad US dollar rally.

The tail-end of last year’s construction stimulus is still at work in China with year-on-year floor area starts still up. I expect this to turn negative in the next month, a good signal for the end of the boom:

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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.