Daily iron ore price update (change in outlook)

Monday, 12 July 2021

The ferrous complex was mixed Friday July 9, 2021 with daily weakness giving way to evening strength as markets jumped on Chinese credit news. Spot was down, paper up overnight and steel flat:

Friday evening’s better Chinese credit data and RRR cuts have not altered my immediate outlook. I still see Chinese growth slowing through H2 and iron ore falling from Sep/Oct.

However, the swiftness of the PBoC panic does have implications for 2022. Chinese monetary easing happens in phases that intensify with the failure of each effort.

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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.