Australian banks Australian LNG Australian Shares Commodities Gold Iron ore price

Big iron ore bubble ready to pop?

David Llewellyn-Smith

Thursday, 14 July 2016

Dalian is flat after falling at the open and big iron ore is down solidly with BHP -1.9%, RIO -1.4% and FMG -4.1%:

The FMG bubble may have topped:

As I said this morning, I wouldn’t call the top until steel rolls and given the excuse for the rally in Tangshan shutdowns has another fortnight to run we could see some more squeezes yet. Having said that, anyone with a time frame beyond their nose can be looking to short positions with confidence.

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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.