Daily iron ore price update (twirling, twirling, twirling towards freedom!)

David Llewellyn-Smith

Wednesday, 12 December 2012

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.

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.