Daily iron ore price update (TSIPIO62 Index)

All quiet on the eastern front…

Here is the chart I promised yesterday, the spread between the 12m swap and spot price expressed as a percentage of spot:

Oh yeh, the rally is out of room, in fact, overshot already.

Comments

  1. It’s only a very short time frame to draw any conclusions, but if previous two examples are anything to go by then the lower it spikes to the downside the higher it it bounces to the upside e.g. drop to -14%, peaked above 20%, drop to -8%, peaked above 15%… if this short history is anything to go by (and we were taking nothing more into account than this chart) then the spread could reach over 20% again.