Charlie Aitken thinks so, from The Australian:
Bell Potter Executive Director Charlie Aitken expects spot iron ore to bounce to US$95/ton on restocking, pushing iron ore miners up further after yesterday’s gains. Spot iron ore rose 4.9% to US$84.17 overnight, matching gains in iron ore and steel rebar futures after China’s imports data showed a 16% rise in iron ore imports in the month. “The knife has finally stuck in the spot iron ore price floor,” Mr. Aitken says. “Now is the time to pick up that vibrating knife and buy/short-cover/trade leveraged Australian iron ore equities.” His assessment is that iron ore supply is not dramatically outstripping demand, and he expects traders to come in from the sidelines, even at higher prices, buying cargoes as they know they have seen the bottom. “Personally, I think you’ve seen the bottom for the year in spot iron ore and I wouldn’t be surprised to see the spot price edge back up to US$95.ton on restocking.”
You tell me if iron ore has bottomed:
That looks like greater oversupply to come to me. The rally could take us to $95 if steel mills get it in their heads that the Chinese property market has stabilised. But for now the evidence for that is still thin and this is nothing more than a violent bear market rally.
