Dalian’s iron ore futures bubble erupts

Monday 17 October 2016

Remember that volume spikes that we saw in Dalian iron ore futures from February through April that drove prices wild?

Well, have a look at it now, from Deutsche Bank:

No wonder Dalian been increasingly over-excited versus physical markets. I am having trouble believing these volume and open interest spikes! Here’s the problem, from Platts:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.