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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AUD's picture

Gina Reinhart might have to go on a diet.

HarryM's picture

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

nolla's picture

Triple bottoms are, oh, so rare.

Urban Roman's picture

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

Traprock's picture

More than a chinese phone book.

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.

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

old naughty's picture

no chance of us entering a recession?

I say proven beyond reasonable doubt the world has.

NotApplicable's picture

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

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.

TwoShortPlanks's picture

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

ZeroSpread's picture

Nice and very straight forward H&S plot..

macholatte's picture


Isn't that like the "Matterhorn" formation?

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.


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!

buzzsaw99's picture

I LOLed at those who paid $100 for CLF.

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"?

Dr. Engali's picture

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

diogeneslaertius's picture

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

Overfed's picture

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

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.

Ar-Pharazôn's picture

that's for a sure a solution :P

Bahamas's picture

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

Doubleguns's picture

We that expains the drop in price then.

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.


eigenvalue's picture

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

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.

Debtonation's picture

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

crito's picture

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

Praetor's picture

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

Catch-22's picture

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

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.


SilverTree's picture

How low can it go?

Sofa King's picture

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

LongSoupLine's picture

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

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.

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.

diogeneslaertius's picture

south-central africa has some of the richest untapped Fe

buzzsaw99's picture

The Earth's crust is 90% iron.

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.


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!

poor fella's picture

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

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.


Ar-Pharazôn's picture

"earth is 32% Iron"


true, but mostly in the core