Big drop of iron ore – touching the USD 91.80.
It is a combination of China slowing down (in real term, not the news), Chinese property slowdown, and de-stocking.
The target is the last minimum or even lower, so between USD$85 and USD$75.
And unless we have again another big Chinese stimulus, last time recovery towards the end of year will be more muted with a target of USD$90- USD$95 as China enters in a new economic phase. This scenario is good unless we have a serious crash in China.
The great fall last Friday was caused by some new rules (more stringent) in regards to margin loan on iron spot. So this week the situation should ease.
As usual the Australian Government missed the target completely. The estimates were on USD $110
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