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"Watching this market is like watching the Titanic," writes a commodity broker of iron ore, off...

"Watching this market is like watching the Titanic," writes a commodity broker of iron ore, off another 7% today to just $90/ton. The plunge will put to the test to the theory (also hopefully put forth in today's Joy Global earnings release) that Chinese ore production will come to a halt below $120/ton. Since when has oversupply/low prices caused the Chinese to cut back?
Comments (2)
  • TwistTie
    , contributor
    Comments (2476) | Send Message
     
    Actually, watching the share price of RIO and the spot price of iron ore is more like watching a kayaker in heavy rapids.
    29 Aug 2012, 10:16 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    I've been watching the movements of ships for a while. So far not much indication that China has increased imports. Chinese iron ore is low quality. Lower iron ore prices would actually increase imports as domestic production decreases. The other odd factor to watch is ship breaking for scrap steel, which has been fairly active this year. These are the types of changes I have been watching.
    29 Aug 2012, 04:26 PM Reply Like
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