Daily iron ore price update (limit down)

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The ferrous complex was smashed on August 31, 2021 as Chinese data tanked. Just as importantly the market took it at face value rather than seeing it as good news auguring more stimulus. Spot was hit and paper collapsed limit down:

There’s not much more to add. I remain of the view that we are going to $100 before year-end because iron ore is in a glut as Chinese demand withers, supply rebounds and the price needs to fall the highest marginal cost producer before it stabilises.

Everything in between here and there is speculative codswallop.

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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.