Daily iron ore price update (thin boom)

The ferrous complex powered on January 27, 2022:

Clyde Russell is useful today:

 Iron ore is enjoying a rally built largely on two factors that have yet to eventuate, a renewed building boom in China and possible supply disruptions in top exporter Australia.

On the first, any Chinese rebound is, at this stage lacking any drive from property so isn’t much chop for iron ore.

On the second, OMICRON is a risk but clearly Big Iron is setting the WA agenda for borders and pandemic management so I’m not overly concerned about that, either.

There is a third factor which has not happened yet either – Ukraine – which is also adding to the bid.

With the Fed coming for oil (and the wider commodities complex), and with such a thin rationale for the rally, I still see this as a bear market bounce.

As an investor, I’d be more looking to set shorts than chase the rally.

Houses and Holes

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