Find below the iron ore price table for March 11, 2013:
I definitely reckon the top is in for the year. Indeed, with the amount of negative press on Chinese growth, the shift towards soft-infrastructure stimulus and anti-real estate measures, downwards pressure is assured.
On a slightly brighter note, Indian volumes remain offline and port inventories resumed falls last week.
Morgan Stanley has argued these lower levels will underpin some strength in the spot price. But that assumes they will be replenished. A better question is why they have fallen in the first place and that, in my view, is simply because the one-way supply shortage is over and hoarding has diminished.
Australia is very fortunate that Indian supply is offline right now. Soon enough, that won’t matter either.