Daily iron ore price update (the OPEC lesson)

David Llewellyn-Smith

Monday 13 March 2017

Iron ore price for March 10, 2017:

Spot stable. Paper hit new lows overnight. Coking coal too. Thermal has hit new correction lows. Iron ore port stocks fell 50k tonnes last week. As a warning consider that the last little destocking in August 2016 fell 3.15mt and cost the spot price $6. When the next destock really gets going it’s got a good 30mt to dump and that’s assuming it is only going to return stocks to some semblance of par (which is never has before).

As the great bulks bear market rally ends, the Australian press is struggling to get its head around it, from the AFR on coal:

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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.