Share on Facebook Share on Twitter Share on Reddit + - Daily iron ore price By Houses and Holes in Commodities, Iron ore priceat 7:27 am on September 18, 2012 | 11 comments The rally continues, this time in Chinese steel prices as well: And the charts: Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED INS&P: Carmageddon to roll onVia S&P today: Global light vehicles salesDaily iron ore price update (ex-growth)Texture from Clyde Russell: Is it time toDaily iron ore price update (no stimulus)Texture from Reuters: Monday’s data followedDaily iron ore price update (blow off)Texture from Reuters: Financial markets in China Comments Peter Fraser September 18, 2012 at 7:46 am Have no fear, I’m sure that iron ore will drop below $100/T again. Houses and HolesMEMBER September 18, 2012 at 7:47 am So you’re back, sarcasm and all. mikeyc September 18, 2012 at 8:37 am Maybe not, maybe Peter’s read this article on Zero Hedge…quoting from Reuters Chinese banks and companies looking to seize steel pledged as collateral by firms that have defaulted on loans are making an uncomfortable discovery: the metal was never in the warehouses in the first place. China’s demand has faltered with the slowing economy, pushing steel prices to a three-year low and making it tough for mills and traders to keep up with payments on the $400 billion of debt they racked up during years of double-digit growth. As defaults have risen in the world’s largest steel consumer, lenders have found that warehouse receipts for metal pledged as collateral do not always lead them to stacks of stored metal. Chinese authorities are investigating a number of cases in which steel documented in receipts was either not there, belonged to another company or had been pledged as collateral to multiple lenders, industry sources said. Ghost inventories are exacerbating the wider ailments of the sector in China, which produces around 45 percent of the world’s steel and has over 200 million metric tons (220.5 million tons) of excess production capacity. Steel is another drag on a financial system struggling with bad loans from the property sector and local governments. “What we have seen so far is just the tip of the iceberg,” said a trader from a steel firm in Shanghai who declined to be identified as he was not authorized to speak to the media. “The situation will get worse as poor demand, slumping prices and tight credit from banks create a domino effect on the industry.” http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy Dr Watson September 18, 2012 at 8:44 am He was just waiting for the Fed to start up the printing presses, weren’t you Peter? Lef-tee September 18, 2012 at 9:00 am I tend to agree. TSpencer September 18, 2012 at 9:07 am oh noes the iron ore going to $0 meme is over… good thing the forecast merchants never put any money on their predicitions GB September 18, 2012 at 9:49 am Mod: keep the tone down, again GB. GB September 18, 2012 at 11:31 am i was just pointing out the similarities between those who incorrectly thought there was an iron “floor” price at the marginal cost of production, and those in property who still incorrectly think there is “floor” price for property at the marginal cost of production. Revert2Mean September 18, 2012 at 10:21 am Have no fear, I’m sure that iron ore will drop below $100/T again. That’s what a lot of potential home buyers and investors are thinking, Pete, including me. It’s just more reason to sit on our hands, ol’ buddy. Peter Fraser September 18, 2012 at 10:40 am Lol – it might work for you in Perth if it’s tied to the price of iron ore, which it loosely is. Cheers… Lef-tee September 18, 2012 at 9:20 am “Have no fear, I’m sure that iron ore will drop below $100/T again.” Sooner or later likely yes I’m thinking, since the current rally in ore and steel prices doesn’t appear to be underpinned by any great increase in actual usage for the material. There’s been two seperate rallies in the stuff over the past two weeks, both look speculative in nature.