FMG is powering today, up 4%, but the news in China ain’t so good. From Reuters:
Chinese iron ore futures fell for a third straight day to a fresh low and spot prices droppedto a 2-1/2 year trough on weak buying from steel mills in top consumer China.
Iron ore futures on the Dalian Commodity Exchange touched a low of 695 yuan ($110) a tonne, the lowest since the contract was launched in October last year. It fell 1.3 percent to 699 yuan by midday break.
“The tepid steel market and rising iron ore supplies from overseas put the raw material under huge pressure, and there is risk that some traders may rush to sell at low prices to liquidate some stocks,” said an iron ore trader in Shanghai.
Traders said Australian Pilbara iron ore fines with 61-percent grade sitting at ports was quoted at 680 yuan a tonne.
…rebar futures for October delivery fell for a fifth consecutive session to 3,075 yuan by the midday break, down 0.3 percent.
Looks like folks pinning their hopes on a weaker dollar and an iron ore bottom.
