Daily iron ore price update (contango!)

David Llewellyn-Smith

Thursday, 11 September 2014

Here are the iron ore charts for September 10, 2014:

Paper markets were very weak early but rebounded to be down modestly. Rebar futures closed flat. Physical is still plunging with spot at new record five year lows and rebar average still tumbling. That has opened up our first decent contango between spot and 12 month swap, a reliable indicators that the bottom is in sight.

The idiocy trade remains firmly in control of iron ore shares. They were all down yesterday but there were no new lows. It’s a reasonable bet that some short term rebound is in the offing.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.