Boom, Baby, Boom: Iron Ore is Not a Cryptocurrency
It’s hard to concentrate on anything else except iron ore at the moment. It hit US$230 a tonne yesterday in China.
That’s an astonishing run. Iron ore stocks rallied hard yesterday. No doubt they’ll be some fun today too.
It’s worth remembering, however, that iron ore is not a cryptocurrency. It cannot run up forever without a real-world consequence.
Eventually, the input cost for the steel mills gets too high and they’ll lower their bids. At what point does that come?
Your guess is as good as mine at this point.
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