Daily iron ore price update (ready to puke)

David Llewellyn-Smith

Monday 26 October 2020

Iron ore prices for October 23, 2020:

Spot was down sharply. Paper too. CISA output was still extreme mid-October. Inventories remains stupid

My guess is we’re getting ready for a puke lower here. There’s plenty of supply again with much more to come. Chinese demand looks good on an output basis but beneath that leading indicators are not good once we remove catch-up growth:

$100 looks like a good short term puke target. Then a better bid into new year on restocking. Then $80 moving into Q2 2021 as restocking ends.

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.