Australian banks Australian LNG Australian Shares Commodities Featured Article Gold Iron ore price

Big iron bubble builds

Wednesday 13 July 2016

The iron ore bubble is free and running with Dalian adding another 2% at the open and big iron chasing with BHP up 2.3%:, RIO 2.4% and FMG 4.4%:

The idiocy spread now on FMG is plunging to all sorts of unknown insanity:

Moreover, its ratio to the underlying 58% iron ore price which blew out to an -18.5% discount yesterday is now remarkable:

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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.