Find the latest iron ore charts below:
Paper markets were mixed. Although Dalian 6 month future were firm, they are still pricing in the mid $70s for January delivery once taxes and charges are removed. 12 month swap weakness is a concern. These markets have been way oversold yet the working off of excesses is taking the form of a sideways grind not a bounce, illustrating muted support. The spread to spot is very wide even allowing for the premium on Qingdao prices and will close one way or another. If the swap market doesn’t pick up, spot will fall. Underlining the physical versus paper bifurcation, the rebar average rally continued but futures fell sharply.
Texture comes from Reuters:
