So this is probably a good time to remind you that the rout in iron ore – which, you’ll recall, was the proximate cause of all kinds of commodities carnage last week – isn’t over.
Not by any stretch. And weak China data out overnight just added to the gloomy mood.
Things got off to a promising start on Monday but, as Bloomberg put it earlier, “the revival was snuffed out.”
“At the ports, early signs are emerging of traders dumping their holdings, with some transactions done at low prices,” Shanghai Cifco said in their daily note. “Ironore is expected to remain vulnerable.”
In the second piece linked above, Bloomberg notes that “in Singapore, SGX AsiaClear futures fell 2.1 percent, overturning an earlier climb of as much as 2.7 percent.” Here’s the visual:
Panning out a bit, it’s a horror show:
“Iron ore currently holds the title of being the weakest commodity product,” Xu Huimin, an analyst at Huatai Futures Co. told Bloomberg by email on Monday, before summing this shitshow up as follows: “Traders absolutely don’t wish to hold it. I guess pressure from the arrivals of future shipments is too great.”
Yeah, “I guess”…
[Charts: BBG]
