Daily iron ore price update (the coconuts phase)

Tuesday 10 August 2021

The ferrous complex entered the coconuts phase on August 9, 2021 as spot was stable, paper crashed and steel fell:

Why spot didn’t fall when Dalian was murdered is anybody’s guess. Usually when this happens there’s catch-up the next day.

Every five years or so I have to write this same post. This is the period in the crash that I call the coconuts phase. It is when those who are new to the iron ore market think that the correction won’t last long, the mining money pump will resume shortly and FMG will go to $100.

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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.