The big surge in iron ore prices is over. Prices have collapsed by more than 22% over the past two weeks. Tonight alone, prices are down by 6%.
In an otherwise sanguine Asian trade this evening, mining related stocks are getting the business, with many of the Australian based miners feeling the brunt of the sell off.
The reason for the sell off, allegedly, has to do with Chinese crackdown on speculation. They’re doing for iron what they did for Macau. My opinion is empirically simpler: the iron ore short squeeze has ended and now the unwind begins to equilibrium.
finally the crackhead miners ran out of crack.