Iron Ore Market Update (23 Jun 2022)

Iron ore has suddenly become very bearish, going down for 9 consecutive days from 140+ to 110+. Below is the 6-month price chart.

Iron ore price (Dec 2021 to Jun 2022)

Sentiment seems to have broken down. Prices have gone into fresh 2022 lows. The biggest reason is that the players in the sector were too optimistic on future demand potential. Prices were bid up based on hope, but the hope has been shown to be somewhat misplaced.

There is a decent chance of a bounce at this point, as the drop has been rather drastic. Also, a speech by the Chinese president hinting at stronger stimulus efforts is supportive. A short-covering rally may occur. Thus large short positions are risky now.

Author: novaliser

I have been trading since 2012, and retired from the corporate world in Dec 2021 after accumulating enough profits to feel comfortable living without a stable monthly income.

Leave a Reply

%d bloggers like this: