Daily iron ore price update (the miracle)

David Llewellyn-Smith

Wednesday 1 April 2020

Iron ore prices for March 31, 2020:

Spot is still holding. Paper too. Steel prices are only eroding slowly. Port stocks of iron ore fell to 121.7mt.

I have explined before why it is not that unreasonable that iron ore prices have held up given various supply restrictions. The real miracle is Chinese steel prices. Why thatey haven’t gone to zero is beyond me given the unprecendented inventories and poor domestic demand outlook. The China steel PMI catured that yesterday with new orders sittign at 38:

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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.