Daily iron ore price update (credit crunch)

Thursday, 12 August 2021

The ferrous complex was mixed in reverse on August 11, 2021 as spot jumped, paper tanked overnight and steel has still not updated:

Markets are still hopeful of further Chinese stimulus but the truth is the economy is slowing fast and credit even faster with new yuan loans falling away at an impressive clip:

And it is concentrated in the commodity-centric sectors of construction. Underlying demand is going to fall away throughout H2 in spite of any efforts to revive it short of full credit stimulus. There will be more efforts, via Yuan Talks:

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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.