‘Tis a slow news days today and perhaps I’ve got too much time on my hands. Then again, I may have just had an epiphany.
I am referring to my new iron ore indicator, the “idiot spread”. Rebar futures have opened the better part of 1% down in China and Dalian iron ore futures are down another half percent as well. Local iron ore miners are falling sharply and juniors remain quite sickly, though not as terminal as they should:
The majors, however, remains far above where they were the last time the iron ore spot price was at these levels, and hugely above the 2012 crash:
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