Find above the iron ore price complex chart for December 11, 2012. Here is the ore chart:
And steel chart:
Pretty clearly, spot iron ore has broken free of fundamentals, associated prices and all sense, twirling, twirling, twirling towards freedom!
My spread charts are now registering dangerous over-stretch for this price range. Swap versus spot:
And rebar versus spot:
Once a market begins twirling towards freedom who knows where it ends? A reversal is in the offing in the not too distant future.