Iron ore idiot spreads explode

Wednesday, 25 February 2015

There is no stopping the great iron ore equity bear market rally! BHP and RIO are marching on again today, up 2% and 1% apiece while FMG is also up 1%. To the indexes:

As you can see, both of the big players have recovered a lot of their correction losses pushing the idiocy spreads to brain-numbing wides:

Even the move to price FMG sanely has not been enough to prevent the average spread from hitting a new record. The oil bounce can justify BHP’s lift but RIO?

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.