Iron ore charts for October 26, 2016:
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Holy cow, Batman! Tianjin benchmark jumped 2% to $62.70. Chinese paper hit its highest level in 18 months. Singapore fell. Steel firmed but wildly out-paced by inputs. Physical coking coal rocketed 10% plus to $275. Thermal is wild.
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This has suddenly devolved into a major Chinese policy debacle in which it is delivering a big hit to its own terms of trade and price stability for no apparent reason. The odds of a sharp policy reversal to coal production restrictions have to be spiking with what are now historic coal price jumps. If you’re long beware. Short looks good!