The Only 'Un-Manipulated' Chart Of The Real Un-Recovery You'll Ever Need

Tyler Durden's picture


Probably no other commodity is tied to global growth, especially EM and China growth, than the key steel-making ingredient - Iron Ore. The iron ore price continues to plunge and it would appear that very few are focused on it. Critically, this is the one commodity that is not a futures contract, cannot be manipulated by trading desks or by levered hedge funds. Despite all the euphoria about risk assets and commodities - and the central bank front-running - Iron Ore prices continue to sink lower and lower...



(h/t wallstreetmane)

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Fri, 08/17/2012 - 09:24 | 2713806 AUD
AUD's picture

Gina Reinhart might have to go on a diet.

Fri, 08/17/2012 - 10:06 | 2713953 HarryM
HarryM's picture

Interesting - according to Doug Short there is almost no chance of us entering a recession.

Fri, 08/17/2012 - 10:26 | 2714031 Precious
Precious's picture


Fri, 08/17/2012 - 10:35 | 2714058 nolla
nolla's picture

Triple bottoms are, oh, so rare.

Fri, 08/17/2012 - 10:46 | 2714104 Urban Roman
Urban Roman's picture

So, Gina Reinhart really needs that diet. How many chins does she have?

Fri, 08/17/2012 - 13:30 | 2714681 Traprock
Traprock's picture

More than a chinese phone book.

Fri, 08/17/2012 - 17:14 | 2715401 Dead Canary
Dead Canary's picture

HA! That's one's so old the first time I heard it I fell off my dinosaur and cracked my stone underwear.

Thu, 08/23/2012 - 22:58 | 2732570 I think I need ...
I think I need to buy a gun's picture

is that a triple bottom or a completed right shoulder now going thru the 2 previous lows finishing off the head and shoulders pattern

Fri, 08/17/2012 - 11:06 | 2714155 old naughty
old naughty's picture

no chance of us entering a recession?

I say proven beyond reasonable doubt the world has.

Fri, 08/17/2012 - 11:37 | 2714228 NotApplicable
NotApplicable's picture

I think the takeaway here is that we've blown past it, never to return.

Fri, 08/17/2012 - 10:10 | 2713964 Peter Pan
Peter Pan's picture

Actually the whole of Australia will be going on a diet at this rate. As for the Brazilians they will also feel the pinch having commissioned the construction of about 18 supertankers for the transport of ore.

The two product/two customer economy of Australia may well be hitting a speed hump of epic proportions.

Fri, 08/17/2012 - 10:41 | 2714080 TwoShortPlanks
TwoShortPlanks's picture

Two-speed economy engages reverse's hard to slow down all those Audi's ya know!

Fri, 08/17/2012 - 10:54 | 2714119 markelshark
markelshark's picture

Historically the price is still pretty freaking low

Fri, 08/17/2012 - 11:54 | 2714265 ZeroSpread
ZeroSpread's picture

Nice and very straight forward H&S plot..

Fri, 08/17/2012 - 15:21 | 2715006 macholatte
macholatte's picture


Isn't that like the "Matterhorn" formation?

Fri, 08/17/2012 - 10:43 | 2714093 Desert Irish
Desert Irish's picture

Australian housing crash in 10....9.....8.....

On top of that the Julia might want to revise the estimated $10 billion her government was meant to get from the new mining tax and the estimated $450 billion in capital expenditure this year on mining related works. I agree with the poster above Australia could be heading for a major hit.


Fri, 08/17/2012 - 11:18 | 2714180 Praetor
Praetor's picture

Didn't Swan predict he will reduce Australia's debt due to high iron ore prices? Me thinks he will be wrong!

Thu, 08/30/2012 - 04:57 | 2748919 Ar-Pharazôn
Ar-Pharazôn's picture


Fri, 08/17/2012 - 09:25 | 2713808 buzzsaw99
buzzsaw99's picture

I LOLed at those who paid $100 for CLF.

Fri, 08/17/2012 - 09:27 | 2713809 firstdivision
firstdivision's picture

Ummm that's becuase Economy of Scale took over....yearh....that's it.  Does that allow me to walk into the nearest university and claim my Econ PhD?  Also, do I get to be on CNB(S)C as an "economic expert"?

Fri, 08/17/2012 - 09:25 | 2713810 Dr. Engali
Dr. Engali's picture

China must have run out of empty cities to build. Time to tear some down and start over.

Fri, 08/17/2012 - 09:36 | 2713855 diogeneslaertius
diogeneslaertius's picture

John Maynard Keynes texted me to say he approved of your plan to revitalize the ponzi scheme 

Fri, 08/17/2012 - 11:34 | 2714226 Overfed
Overfed's picture

He would have called, but his mouth was full of cock.

Fri, 08/24/2012 - 00:25 | 2732690 MedTechEntrepreneur
MedTechEntrepreneur's picture

Post of the night WINNER!

Fri, 08/17/2012 - 09:47 | 2713900 CClarity
CClarity's picture

That's just how they stockpile commodities there - in empty cities and buildings.  It's just a different method of market manipulation.

Thu, 08/30/2012 - 04:58 | 2748921 Ar-Pharazôn
Ar-Pharazôn's picture

that's for a sure a solution :P

Fri, 08/17/2012 - 09:27 | 2713818 Bahamas
Bahamas's picture

All those Iron Man movies didn't work the price up.

Fri, 08/17/2012 - 09:49 | 2713904 Miss Expectations
Miss Expectations's picture
Robert Downey Jr. injured, 'Iron Man 3' stops shooting

Fri, 08/17/2012 - 10:10 | 2713969 Doubleguns
Doubleguns's picture

We that expains the drop in price then.

Fri, 08/17/2012 - 12:25 | 2714389 mick_richfield
mick_richfield's picture

Stand in: Tin Man. 

Located in warehouse of sets for old movie, found nearby on lot.

He's a little rusty, but works cheap.


Fri, 08/17/2012 - 09:29 | 2713825 eigenvalue
eigenvalue's picture

And the steel futures on Shanghai Futures Exchange hit a 2 year low today. 

Fri, 08/17/2012 - 09:30 | 2713834 Sofa King
Sofa King's picture

They probably found more garbage to blend with it to make their steel even shittier than it already is, so they don't need to buy as much.

Fri, 08/17/2012 - 09:32 | 2713840 Debtonation
Debtonation's picture

If it's not a future then how am I supposed to short it?

Fri, 08/17/2012 - 09:32 | 2713841 crito
crito's picture

thanks for the red arrow on the graph, I couldnt figure out which direction its was heading.

Fri, 08/17/2012 - 11:21 | 2714191 Praetor
Praetor's picture

Nah thats just the shlong of Australia's mining magnates once they realised their profits will be slashed.

Fri, 08/17/2012 - 14:06 | 2714769 Catch-22
Catch-22's picture

...major head and shoulders Bitchez; one more notch aaaaaaaannnnd it's gone...

Fri, 08/17/2012 - 09:34 | 2713846 rsnoble
rsnoble's picture

That's good for me as I have a small machine shop and fabricate a lot of stuff. So all these lies actually hurt, sky high metal prices in 2011 and yet the economy sucks. What shortage? Down south they are filling out of business warehouses with steel because they have no place else to put the shit.


Fri, 08/17/2012 - 09:34 | 2713847 SilverTree
SilverTree's picture

How low can it go?

Fri, 08/17/2012 - 09:38 | 2713867 Sofa King
Sofa King's picture

I believe the answer is zero, theoretically speaking, of course.

Fri, 08/17/2012 - 09:42 | 2713884 LongSoupLine
LongSoupLine's picture

unless there's a bond for it...then it can go negative.

Fri, 08/17/2012 - 13:30 | 2714683 poor fella
poor fella's picture

I'm curious how high it can go... Let's put it in the futures markets.

GS and JPM could rehire their fiction authors to write stories about how iron is as important as water.

Fri, 08/17/2012 - 09:35 | 2713849 Meesohaawnee
Meesohaawnee's picture

speaking of manipulated. two minutes into the trading. you see the methodical pop pop pop. to all indexes.. yup. its algo day! have a nice weekend yall. good luck. like lt kilgore said in apocalypse.. someday this wars gonna end. Someday this fraud is gonna end.

Fri, 08/17/2012 - 09:35 | 2713850 diogeneslaertius
diogeneslaertius's picture

south-central africa has some of the richest untapped Fe

Fri, 08/17/2012 - 09:45 | 2713890 buzzsaw99
buzzsaw99's picture

The Earth's crust is 90% iron.

Fri, 08/17/2012 - 11:08 | 2714162 Stuck on Zero
Stuck on Zero's picture

The earth's core is 90% iron.  The earth's crust is mostly silica, oxygen, and aluminum.  Only 5% iron.


Fri, 08/17/2012 - 12:43 | 2714485 mick_richfield
mick_richfield's picture

Earth mass == 6e21 tons

earth is 32% Iron

total iron mass in Earth == 2e21 tons

current price per ton == $110

total value of Iron in Earth == 2e23 dollars

people on earth == 7e9

total value of iron in Earth, per human: $ 3e13

$30 Trn per person!

We are all rich beyond our wildest dreams!

Fri, 08/17/2012 - 13:32 | 2714692 poor fella
poor fella's picture

So do I buy puts or calls?!! TELL ME!

Fri, 08/17/2012 - 14:27 | 2714834 epwpixieq-1
epwpixieq-1's picture

Absolutely agree!

In addition the Earth is flowing in a Sea of Energy (Tesla, Thomas Morrey).

The problem with that though, is that, if one thing is widely abundant and easily accessible it is NOT of a value any more. This is why the CONTROL over the resources is more VALUABLE than the resources themselves.


Thu, 08/30/2012 - 05:03 | 2748923 Ar-Pharazôn
Ar-Pharazôn's picture

"earth is 32% Iron"


true, but mostly in the core

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