Advertisement
Iron ore charts for October 18, 2016
Do not adjust your television sets. Bulk commodites are in a full blown melt-up. Despite solid falls in Dalian yesterday, Tianjin benchmark rose 0.3% to $58. Paper then hit news highs overnight. Rebar is trailing in the wake. Coal is driving it all now and has entered a complete blow-off.
I can point to S11D warming up. Samarco’s return. Failing Chinese house prices. Or any other in a range of indicators telling us that the boom is going to come apart. But that’s rational and right now this market is running on the pure adrenaline of a billion mad Chinese traders.
Advertisement
The full text of this article is available to MacroBusiness subscribers
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.