11.01.2013 - Hard to get a grip on commodities with a mixed picture from China
Trying to make sense of the commodities market is getting harder by the day. For example, we had barely begun to taste the euphoria of the (some would say miraculous) recent recovery in the iron ore price before, overnight, Bloomberg reports a good news/bad news outlook from Deutsche Bank. The bottom line in the bank’s thinking is that we may for a short while do better than the recent 14-month high and prices reach $US170 a tonne - but then they’ll retrace back down to $US120/tonne as supply expands. Sure, that’s better than the $US86/tonne we saw late last year but, as the report points out, going from $US170 to $US120 is a 29 per cent fall - and should that eventuate, the iron ore sector is bound to get another case of the jitters...............................................Full Article: Source