Commodity Carnage Crushes Trumpflation Hopes: "Everyone's Nervous The Bottom Is Falling Out"

Tyler Durden's picture

Another night of ugliness in Asia as the 'froth' is blasted out of the exuberant hot-money-chased commodity markets. Chinese steel and iron ore futures tumbled on Wednesday to the lowest prices in months as market sentiment turned bearish on the demand outlook.

As Reuters reports, China's producer price inflation cooled for the first time in seven months in March, pressured by fears that Chinese steel production is higher than demand, leaving a glut of the metal later this year.

"We're not seeing much interest on the buy side, everyone is nervous that the bottom is falling out," said a commodities trader in Perth, Australia, who closely monitors activity on China's Dalian and Shanghai Futures Exchanges for overseas clients.

The most active rebar contract on the Shanghai Futures Exchange settled 3.5 percent down at 2,893 yuan ($420), the lowest since Feb. 2. The sharp decline in steel futures has tamed buying interest in the physical market as well. Iron ore for delivery to China's Qingdao port has swung into a bear market, with the price sinking more than 20 percent from its 2017 high in February to $74.38 a tonne, according to Metal Bulletin.

It seems the hopes of Trumpflation (and the fading China credit impulse) has erased growth hope...

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ParkAveFlasher's picture

Time to blow some sh!t up.

Franklin Mint Chip's picture
Franklin Mint Chip (not verified) ParkAveFlasher Apr 12, 2017 12:28 PM

Every time I buy another silver bar, I picture myself playing "Jenga" with teh world economy.

bob_bichen's picture

Franklin MInt Chip   <<< shameless "bitcoin" spammer ("behaving himself" for the moment)

NoDebt's picture

I hate it when things get cheaper. 



nuubee's picture

Finally I'll be able to build the space elevator I've always wanted.

froze25's picture

I would much rather have a space elevator to start mass human exploration to the stars then more BS wars. Seriously I think the space elevator would be awesome. The amount of money that the Military can't account for would of already had built a few of them.

El Vaquero's picture

I'm not nervous, but (OT) I just drew for deer, elk and oryx.  It's going to take weeks to wipe this smile off of my face.  This is better than finding the bb gun hidden on christmas morning.  Fuck yes!

Mustafa Kemal's picture

" I just drew for deer, elk and oryx"

Nice, you off to the Gila?

El Vaquero's picture

In November and December.  That's deer and elk, respectively.  I whacked a cow elk last December down there in the same area.  The last few times I've been down there looking for elk, I've seen deer too.  Oryx is off range, so all around, but not on the White Sands Missile Range.  It's a tough hunt, but I have the whole month of July.  

Oldwood's picture

It always seems that the only things truly getting cheaper are those things WE have to sell....Like our labor.

froze25's picture

You mean that our labor has a cost to it and isn't exchanged for pure profit? Shit man all this time I have been filing my income taxes incorrectly all these years.

Raffie's picture

Well, when SHTF the price will rip high.

We just have to wait. Also the USD is phoney money anyhow. The true value of PM comes out when SHTF.

Take some silver and gold to Venezuela and see what you can buy. 

Franklin Mint Chip's picture
Franklin Mint Chip (not verified) bob_bichen Apr 12, 2017 12:34 PM

Do you want an award for being such a great hall monitor bob_bichen??

bob_bichen's picture
bob_bichen (not verified) Franklin Mint Chip Apr 12, 2017 1:23 PM

Franklin Mint Chip  <<< CHRONIC "bitcoin" SPAMMER

stacking12321's picture

you're out of your league, here, bob.

bitcoin isn't a company, it's an algorithm, so it makes no sense to say bitcoin spammer.

Librarian's picture

I picture it more along the lines as you being a frog that just captured a fat juicy fly but that is now getting swallowed whole by a giant muskie.

busy, busy, busy.

Chuck Norris's picture

C'mon and fat finger some gold now.  Please.  I need to add some moar

GunnerySgtHartman's picture

It's coming.  The price is getting too close to $1300

English herbsman's picture

Right now, our economy is the equivilant of a group of old men beating a dead dog to make it walk an extra mile. 

BigFatUglyBubble's picture

and injecting it with bath salts and meth flakes. 

Squid Viscous's picture

maybe Yellen will put some Mighty Dog in her twat to lure it across the finish line...

Money Honey's picture
Weak Silver Demand & Record Shorts – The Cartel is Winning the Manipulation Game Both Sides

The Cartel has been quite successful in manipulating silver prices (and gold) down ever since 2011. Every major rise has been slammed with unimaginable record paper shorts ever since. The “TRUE Measure” of the Cartel’s success at manipulating the bullion markets is that it has now succeeded in manipulating the minds of the physical gold and silver investors. Here’s the HOW & WHY.

Weak Demand & Record Shorts – Best Indicator of a Massive Rise in Silver Prices


Conax's picture

They may have dampened the spirits of the rank and file, but JPM has a customer that is buying all the shiny and stacking about a half million ounces a day.

USG, Chinese, or Jamie himself, who knows.

When it got away from them in 2011 they started chanting, "Never Again, never again, never again..." (hm, I heard that line before..)


bardot63's picture

If the Fed truly wants inflation, they would take their heel off the throat of gold's paper price.  And may still do that.

NugginFuts's picture

what, and make overnight millionaires out of us stackers? Not a chance in hell that happens. 

Librarian's picture

They would not do that because the outcome could not be controlled.

Sure it would be fun and interesting to see what happens when you put a propane cylinder in a burn barrel.  But don't expect that afterwards you will have anything recognizable as either a propane cylinder or as a burn barrel for that matter.

Sick Monkey's picture

The fed can't do anything stupid. It's all been done. 

Squid Viscous's picture

Need moar ghost cities, wi tu low

Yars Revenge's picture

Omg lower prices.

The horror the horror.

Bemused Observer's picture

Yeah, deflation lets the gas out of the balloon so we can see how much rubber we really have. That's gonna be horrible for a lot of people when they see that limp, deflated, wrinkled, used-condom-looking-thing and realize, this is it...

orangegeek's picture

But cattle (not so much hogs anymore), gasoline and oil are nicely bid to keep the CB genocide strategy on consumers in play.


When CB partners take delivery on livestock, they must dump it in the ocean.




kenny500c's picture

Ah, geez, back to knitting underwear in Duluth, thought I could spend my days like a real man shipping out iron ore on the docks.

Snaffew's picture

the ol' btfd strikes again...

Ghost Writer's picture

If  inflation is needed print more money.

What this means is that economies are slowing down, most likely due to excessive debt, and that is much harder to fix

Librarian's picture

That isn't the answer either.  See, "Exporting Inflation".

Also:  Your debt is "excessive" only when someone refuses to honor your IOUs.

If you look at RL as a guide to how long an unbalanced economic system can keep going, the answer is, much longer than you or I can believe or accept.  See, The Big Short 2015.

But when it blows, boy oh boy, does it blow!  In the words of the financial philospher and snake-oil salesman Bernanke:  "It will be disorderly".

Your best chances for getting to the other side of The Big Reset as painlessly as possible will be to stay in a place that is more or less self-sufficient and nonstrategic. 


xvvx23's picture

It wont blow the situation will be managed to death

More like a slow steady decline until the barbarians control 90% of the empire

Librarian's picture

That amendment between the first and the 3rd would not allow this particular insult by a thousand cuts.

I'm not advocating anything.  I'm simply drawing logical conclusions from my experience.

The young don't have any patience for this sort of harnessed socioeconomic micromanagement.

moonmac's picture

This should be our busiest time of the year shipping steel industrial products but it’s dead slow. Did the pie in the sky gravy train full of sunshine and lollypops go off its tracks?