Find below the iron ore complex price table for February 26, 2013:
That’s bearish and for good reason. With the Chinese inventory draw down bottoming, plus its declaration that it will prevent rising house prices with obvious knock on effects for real estate development (which accounts for between 15% and 30% of steel consumption depending upon who you ask) the one-way bet on iron ore has suddenly reversed itself.
That prices can also ignore Cyclone Rusty, which is now Category 3 and expected to build to Category 4, and is bearing down on iron ore heartland shows the iron ore bid has quite dried up:
Add in a suddenly shaky broader environment and the only way is down. I would not be surprised to end back in the high $130s shortly.