Macrobusiness on iron ore: Paper markets continue to plumb new depths with the 12 month swap at $95

Macrobusiness on iron ore: Paper markets continue to plumb new depths with the 12 month swap at $95. But, let's face it, it's still too bullish. By this time next year, iron ore will be at $80 barring some complete policy reversal in China. Shouldn't it be pricing that outcome already and, if so, could it go there now? Dalian is also on the verge of a new low. Physical is tracking the derivatives lower. The Baltic Dry capesize retraced another 2%. Rebar average continues its little bounce. We are now clearly in the middle of an iron ore price shock that will run right through the second half of the year as quarterly contract prices catch up. - and here's a 20 years chart of iron ore for those thinking iron ore at $80 could never happen: (VIEW LINK)