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

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.

David Llewellyn-Smith
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  1. Some exuberance that support will come from Chinese rail construction – a number of major projects have been announced.


    “…recovery would rely not so much on export growth and resurgent housing prices as on consumption, infrastructure investment and development in western and central provinces…”

    “…government-backed infrastructure investment would be the primary engine driving growth…”

    We await official announcement.