Free Trial
JGB TECHS

(M2) Correction Extends

US STOCKS

Late Session Rebound

AUSSIE 10-YEAR TECHS

(M2) Corrective Cycle Remains In Play

AUSSIE 3-YEAR TECHS

(M2) Gains Still Considered Corrective

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
COMMODITIES
  • Momentum on iron ore prices has remained firm this week despite investors’ growing concern over China property sector.
  • The spot price on benchmark IO 62% FE has been gradually reaching new highs in January despite the recent market turmoil and is up 60% since its November lows.
  • The chart below shows the strong divergence between iron ore prices and Evergrande ST bonds, which keep trading at ‘depressed’ levels this month (i.e. June 2025 bond is currently trading at 15cents on the dollar).
  • We previously saw that part of the plunge in iron ore prices in H2 2021 was linked to the government crackdown on the real estate market, which has been a strong buyer of steel.
  • However, recent gains in the commodity have been partly attributed to the renewed supply disruptions in top exporter Australia.
  • In addition, the announcement of further easing measures from China officials and the potential reversal in ‘liquidity’ (TSF 12M sum) could continue to support some commodities heavily depending on China demand (such as iron ore).
  • Next resistance to watch on the topside stands at 140.80, which corresponds to the 38.2% Fibo retracement of the 80.40 – 238.60 range.

Source: Bloomberg/MNI

MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com
MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.