Daily iron ore price update (rising inventories)

Wednesday, 28 July 2021

The ferrous complex stalled again on July 27, 2021 as spot fell, paper too and steel as well, finally:

The culprit was yesterday’s news that China will likely impose new restrictions on steel exports, which adds to a long line of regulatory efforts to dampen iron ore prices. My view is that each is pretty useless but they all add up to real pressure at the margin.

Meanwhile, despite big recent falls in output, Chinese steel inventories are still very high for this time of year:

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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.