Here is the iron ore price table for January 15, 2013:
And the chart:
Nothing startling here as the correction from recent highs continues. The bull trap thesis got a boost with swap punching back through its $120 support:
Of greater concern, however, was the softening of rebar and billet prices which are struggling to break free of last year’s rebound peaks:
If these prices don’t hold up then the retracement of the rally will be sharp.
Meanwhile Rio reported its fourth quarter production figures which, although widely celebrated, look pretty soft in volume terms up only 4% in the year. Full report below.
And for a black laugh, don’t miss Crikey’s take on the recent movements in iron ore. Here’s a snapshot under the title “The $17b iron ore slump that lined Chinese pockets”:
The slump in iron ore prices boosted the Chinese economy — but robbed Australian exporters like BHP and Rio Tinto of significant revenue in 2012. But the tables are turning.
…What’s $US17 billion or so between friends like the Chinese steel industry and iron ore suppliers such as Australia? That’s the size of the multi-billion dollar income boost the Chinese industry got from the iron ore price slump in 2012 — a wealth transfer which in turn battered the Australian federal budget, confidence in this country and the share prices of leading mining companies here and around the world in the closing months of the year.
…After months of remaining silent, the mills, through industry association China Iron and Steel Association, said last month the industry was troubled by overcapacity with prices at 1994 levels. No mention of the multi-billion dollar benefit the Chinese industry obtained from the 2012 slump in iron ore prices.
Those tricky Chinamen will be after our women next. It appears that Crikey inherited more than just The Bulletin’s business. There is also the turn of century xenophobia. Turn of the nineteenth century that is.