Metals – Iron ore breaks below $90/t

Iron ore prices sank below $90/t for the first time since 2022 yesterday as China gloom continues to deepen. Iron ore is one of the worst-performing commodities so far this year, with prices now down about 33% year-to-date. We believe price risks are increasingly skewed to the downside for the industrial metal as the outlook in China, the biggest buyer, continues to deteriorate. Iron ore port holdings in China continue to rise, now back above 150 million tonnes and standing at their highest ever for the time of year, a sign of abundant seaborne supplies. 

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Fed-Speak: Rate cuts coming [09-09-2024]

Fed-Speak: Federal Reserve Bank of New York President John Williams said it is appropriate to slash rates on colling job market and disinflationary trend. He added that it is unlikely that the labour market will be a source of price pressures going forward and timing of rate cut will depend upon incoming data, the evolving outlook and the balance of risks. Fed’s Waller said that he would back front-loaded rate cuts if required. Goolsbee also called for rate cuts.

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