The ferrous complex crashed yesterday after an insane week of gains:
The spot market was closed owing to a Singapore holiday but paper tells the tale. Rebar was belted as well.
Is the peak in? I have no idea. This is now purely a sentiment-driven market.
China waved its hands frantically yesterday:
China will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, the state council said on Wednesday.
China will step up coordination between monetary policy and other policies to maintain stable economic operations, the cabinet also said, as reported by state television.
That’s pretty useless. But, in truth, all it needs to do is wait. It has already pulled the handbrake on iron ore. We just have to wait a while as the Chinese economic tires screech:
Whether or not the peak just passed for iron ore is the wrong question. Beyond any timeframe associated with speculation, the price crash is already built-in, and selling all rallies is the play.