As the forecasts become more bearish, the price action becomes increasingly bullish.
That appears to be the trend in the iron ore price of late with increasingly pessimistic forecasts being met by ever larger daily gains.
That was certainly the case on Wednesday with the spot price for 62% fines jumping another $1.12, or 1.74%, to $65.39 according to Metal Bulletin’s iron ore index.
The increase, something that takes the gain from early April to 39%, leaves the spot price sitting at the highest level since January 23 this year.
Given the current trend, perhaps the only thing that will derail the rally will be a raft of bullish iron ore price upgrades.