From record leverage comes rapid repricing one way and then the other. Levered traders are liquidating as excess supply of most commodities continues to swamp global demand. This is dominant theme likely to persist for some time in the aftermath of the greatest debt bubble ever in human history. If the producers are not yet concerned, they are in denial or– like the Saudis and their Aramco deal–trying to talk up values long enough to help them cash out.
Iron ore futures are under pressure again in Asia — signaling a possible return to the $50s for the benchmark spot price — as concern builds about the outlook for rising supply and China’s clampdown on leverage ripples through markets, possibly triggering forced sales. Here is a direct video link.
Here is the price performance since March 2, 2017 of iron ore, steel, rubber and copper (chart zerohedge), down across the board from 9 to 46% in just 2 months.
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