flemster - maybe the following has got something to do with the the drop in FMG today.. just as well you have not been taking my advise. any way I see you have got your short on and its doing well.
from macrobuiness - Thursday 26th. feb. iron ore spot down to $US 119.00... rebar 3317
its worthwhile looking at the graphs on macrobusiness
"Iron ore spot has more decisively broken support at $120 and 12 month swaps are sitting right on the October 2013 low. Free falling rebar futures fell further to 3307 and are now in backwardation suggesting more weakness to come."
Reuters has two stories with more texture. The first looks at ore:
"Weaker steel prices, lending curbs, plentiful supply of iron ore in the spot market and huge stockpiles at home have combined to drag down prices, said an iron ore trader in China’s eastern Shandong province who sees the price falling further to either $115 or $110. as they dump inventory.
Reuters also offered a glimpse of how weak steel is:
"Li Xinchuang, Executive Vice Secretary-General of the China Iron & Steel Association (CISA), said overcapacity in the sector was “probably beyond our imagination” and added that the sector was facing an extremely complicated situation as a result of slowing growth, structural adjustments in the economy and policies to close old capacity. However, demand was still rising steadily, which, combined with the desire to gain market share, has prompted mills to continue adding capacity."
