17.03.2016 - Physical iron ore price volatility stokes paper trade
Ten-day historical volatility for iron ore futures is approaching 100% after averaging just 29% last year, brokerage Freight Investor Services said Wednesday. Paper trade volatility has exploded since March 7, when The Steel Index's underlying reference price for 62% Fe fines rose 19.5% to $62.60/dry mt CFR. Since then the TSI, a unit of Platts, has given back those gains, printing at $52.50/dmt Thursday. "If a flower show can cause a 20% spike in iron ore prices, then traders should be ready for more unexpected and uncorrelated market moves," FIS said in the report, referring to the horticultural exposition taking in place in Hebei, China's major steelmaking province, over the coming months................................................Full Article: Source
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