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The ferous complex was weak yesterday for no apparent reason as spot fell, paper fell more overnight and steel eased:
Perhaps it was yesterday’s Twitter assault by Westpac Robert Rennie which made a good case for a major price correction in H2:
2.Steel prices have dropped sharply from May record highs. Indeed, rebar down 18/20% from May highs & pushing lows back to late March. With coking coal at 2yr highs & iron ore close to record, steel mill profitability has collapsed. For rebar,profitability is close to record lows pic.twitter.com/wEL3mmvePK
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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.
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