Daily iron ore price update (the glut)

Friday, 3 September 2021

The ferrous complex was weak again on September 2, 2021 as spot fell more and paper held on:

There is now an iron ore glut. It is everywhere you look. FMG grade discounts are blowing out:

As iron ore prices have fallen from record highs, Fortescue Metals Group (ASX:FMG) has seen the return of significant grade discounts for its lower grade iron ore. Around 28-30% of that product RBC says is made up of a ~56% super special fines mix with high levels of impurities like alumina and silica.

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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.