Here is the iron ore price table for November 13th:
Given neither steel prices not the 12m wants to budge, it’s worth revisiting the spreads we follow. First between the 12 month swap and spot:
And between rebar and spot:
And then the above chart expressed as a spread percentage:
Now that’s what I call a trend towards mean reversion.
The rally is running out of headroom.
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.