This must really be getting Goldman Sachs pissed off, the iron ore-steel markets up 19% for the day and such. As an aside, I don’t believe I’ve ever blogged about the hot world of iron ore steel so much (pun intended), let alone three posts in a row.
Ore with 62 percent content delivered to Qingdao jumped 19 percent to $63.74 a dry metric ton, Metal Bulletin Ltd. data show. That’s the biggest gain in daily data going back to 2009 and the highest price since June. The surge was preceded in Asia by a rally in futures, with the most-active contract on Singapore Exchange Ltd. climbing 21 percent to $60 and prices on the Dalian Commodity Exchange rising by the daily limit.
“The iron ore and steel markets have gone berserk — they’ve departed from fundamentals and are heavily driven by sentiment,” Zhao Chaoyue, an analyst at China Merchants Futures Co. in Shenzhen, said before the Metal Bulletin price was published. “Investors are expecting further monetary easing by the Chinese government to boost steel demand.”
Iron ore related stocks are soaring overseas and also here in the pre-market. Shares of CLF and VALE are both up sharply and many others, like X, AKS, TCK, BHP, should follow in kind.
Do you think this is all commodity shenanigans in an effort to give these dying companies one last chance to refi their debts and live another day?
TVIX time….. second add
*ring ring ” Hello? Is this John Kilduff Oil Expert?? Hi. I’d like to ask you a few questions about your $18 a barrel call on oil “
Leave a message after the beep and, if you’re offering me money for my opinion, I’ll return your call.”
Bear market rally…they are almost always thusly impressive.