Daily iron ore price update (new highs beckon)

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So, iron ore returns from holidays refreshed and ready to roll – higher. Here is the price complex chart for February 18, 2013:

And the chart:

So a new high in rebar spot for the move despite sharp falls in rebar futures across the curve (which had run on ahead).

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Iron swaps were unmoved but right now it appears spot is in a classic bull market and will price off whatever is favourable on the day.

Chinese inventory data has been slow and is a week behind but is still bullish showing an ongoing fall in both port stocks and Indian sourced stockpiles:

This move is now very large and it would be quite useful for someone to dig into the dynamics that underpin it.

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With BHP reporting tomorrow expect another rally today!

For below discussion:

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.