Here are the iron ore charts for June 2, 2015:
Do not adjust your television set. Spot iron ore crashed yesterday. Benchmark Tianjin fell $3.10 to $55.80 and Qingdao spot fell $3.57, or 6.03%, to $55.63 a tonne. That’s a nice head and shoulders top in place with a busted neckline suggesting (on technicals) much more downside. Singapore 12 month swaps are fading fast too but Dalian rallied 2 points overnight and is at 415 this morning. Rebar is literally heading for Hades and I added a long term chart for perspective. I do not think that this is seasonal. It is too early for that. CISA released its mid-June steel mill production update and it rose 1.9%:
The seasonal peak tends to come in August/September. This is massive structural oversupply and the scary thing is that the seasonal weakness lies ahead.
