Daily iron ore price (more Chinese stimulus?)

David Llewellyn-Smith

Friday, 14 December 2012

Find above the iron ore price complex table for December 13, 2012.

As I said the other day, once free and twirling who knows where it ends?

All I can do is point again to my spread charts, which are screaming over-bought. Spot/rebar:

And spot/swap:

For these spreads to make sense in terms of recent history the price would need to be around $150. BDI capesize fell another 3+% as well:

Maybe iron ore spot is telling us that more Chinese stimulus is imminent?

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.