Daily iron ore price update (another crash)

By Houses and Holes in Commodities, Iron ore price

at 9:00 am on September 7, 2021 | 8 comments

The ferrous complex crashed again on September 6, 2021 as spot fell off a cliff, paper has some catching up to do and steel did not update:

CISA steel output data for late August was smashed to a new low:

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Though at least inventories fell 10% so demand was better.

However, iron ore supply is also charging higher in Brazil with 34.8mt exported in August:

And year to date tracking materially higher than year:

There is no stopping the iron ore crash. The market is a glut and the price cannot stabilise until it falls to the highest cost marginal producer somewhere well below $100. Perhaps as low $60.

Unless or until China panics.

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Houses and Holes

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.

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