Daily iron ore price update (topping process)

The ferrous complex boomed anew on February 21, 2022:

There are a couple of short-term bullish factors. Ukraine exports 35mt of iron ore that could at risk. WA is reopening and may have some staffing issues for a month as OMICRON infects all and sundry, though the open border and a resumption of FIFO should prevent any serious labour shortages.

But at these prices, that is all factored in and more.

This is pretty typical volatility as Chinese authorities fight the market. Expect ongoing volatility through a topping process that I expect Chinese authorities to ultimately win owing to very weak fundamentals and oodles of iron ore supply that will grow from here until December.

Houses and Holes

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