Daily iron ore price update (ore vs FMG)

David Llewellyn-Smith

Monday, 26 November 2012

Here is Friday’s iron ore complex price table:

And the chart:

And Chinese steel:

Rebar’s roll over does not bode well for short term prices. Neither do the key spread charts. First, ore to rebar in percent, which is too low:

And ore to 12m swap is too high for the $120 price level:

Definitely room for more falls and not much room upside. Which leads me to this final chart:

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.