Iron ore falls, miners pull a Costanza

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Dalian is moderately ill today:

But it’s Costanza day on the market, “do the opposite”:

Perhaps it’s this tripe from CBA:

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“Rising seaborne and domestic Chinese supply and muted restocking demand help explain the recent slump in iron ore prices,” he says.

“The higher prices that prevailed earlier this year likely reflected temporary factors, such as seasonal rains which disrupted Australian iron ore exports.

“However, with steel mill margins spiking higher, we see a strong case for iron ore prices rebounding modestly in the next couple of months.”

Every time iron ore has bounced in recent months, port stocks have immediately jumped higher. Just how high can the price can get with that dynamic in play? It’s a good day to average into more shorts.

Big Gas is getting hammered as oil tumbles:

Big Gold mostly likewise:

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Big Debt is mixed:

And Big Liar is soft:

Avagoodlongweekend.

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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.