Find below the iron ore price table for July 29, 2013:
Rebar futures also fell sharply. Looks like the top is in.
Today’s news snippet comes from BS where occasional iron ore commentator, Brett Cole, cocks his leg on iron ore bears:
So much for the iron ore bears. The spot price for iron ore imported through the northeast Chinese city continues to rise. It was up 50 US cents, or 0.4 per cent, to $US132.60 per dry metric tonne on Friday, according to Bloomberg data.
…Iron ore continues to defy analyst predictions of a third-quarter slump. UBS reckons iron ore will drop to $US71 by September 30. But there is no sign of that. If anything the opposite is true.
…For much of this year iron ore mining executives have been at pains to declare demand for their commodity remains strong. Perhaps now they will be listened to more carefully.
In the common tongue, this is known as calling the top. Certainly it’s too early to claim that the Q3 slump will have no effect. Last year the big drop transpired in July and August. But in 2010 the big drop transpired in September. In my view the likelihood remains that we’ll see a solid fall in Q3, not as deep as last year perhaps owing to lower inventories, but significant nonetheless, and then see a smaller rebound. But if not so what.
As always with occasional visitors to a market, they miss the point that it’s not the immediate story that matters. Long term price prospects are unchanged and now is a good time to building shorts.
