Daily iron ore price update (My god, China now has a steel glut)

Wednesday, 22 September 2021

Iron ore was unchanged yesterday at $94. It just keeps getting worse for the ferrous complex. China now has a steel glut. Levels are higher than this time last year which is very high:

But steel output is well below 2020:

So the inventory to sales ratio is climbing fast despite all of the output cuts.

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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.