Daily iron ore price update (dodged a bullet)

Wednesday, 11 August 2021

The ferrous complex was mixed on August 10, 2021 as spot was clobbered and paper jumped. Steel has not been updated:

Global miners dodged a short-term bullet yesterday when the spot price did not fall. Now today’s catch-up tumble will be offset by the jump in paper.

Still, what does it matter? The market is cooked. We’re in oversupply with more coming and the price is going to have to keep falling back to marginal cost production under $100. None of these things happen overnight.

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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.