Daily iron ore price update (fear is an appropriate response)

Tuesday, 8 February 2022

The ferrous complex was in a state of hysterical bid on February 7, 2022 as everything melted up:

There is no basis in fundamentals for this. Demand is shocking. Inventories enormous. Supply is abundant and the price surge already reopening mines. China is turning hostile to price action and seasonality will turn troublesome shortly.

But this bid long ago departed any rational foundation. It is a melt-up based upon global hot money chasing the last embers of a crazed stagflation bid.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.