Here are the iron ore charts for October 27, 2014:
Paper markets are shot. The 12 month swap is in free fall. Dalian six month futures are pricing several dollars lower still. Dalian May is still pricing $67. Rebar futures bucked the trend and managed a little bounce supporting physical rebar. Iron ore spot appears destined to go to new lows with a nice little head shoulders top on its recent rebound. Reuters has texture:
“It’s been difficult to conclude some deals because of the recent volatility in the market,” said a Shanghai-based iron ore trader…”If the market goes up too quickly you worry whether the seller is going to perform on the deal. But if the price drops you worry whether the buyer would walk away. That’s why we just want to get our hands on their LC (letter of credit) as soon as we can,” the trader said.