Daily iron ore price update (contagion)

Tianjin benchmark fell 40 cents to $63.85. Coking coal is getting the treatment. Steel is fading.

Hard to know where we go from here. We’re entering a seasonally strong period for prices but the combined Fed tightening/emerging market crisis and Trump trade war is developing into a very serious headwind. China knows it, via Reuters:

The price of the construction steel product initially climbed after China’s state radio quoted a cabinet meeting as saying on Wednesday that Beijing will use targeted reduction in banks’ reserve requirement ratios and other monetary policy tools to boost credit support for small firms and keep economic growth steady.

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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.