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Never a dull moment. After manfully resisting the siren song of China’s speculating Banana Man loose in the Dalian exchange, Big Iron has today succumbed and is rocketing towards its doom with BHP piling it on 4%, RIO 3% and FMG 7.3% to equal high for the year at $4.42:
The FMG bubble has hit a new high setting up what might be a double top (or a push to altogether new levels of fun) as its 58% discount pushed out to 17.6%:
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On the question of where next, here is a chart from UBS showing the history of iron ore price seasonality:
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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.
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