Is it a bottom or just another bounce?
That’s the question Australia’s miners and likely the Australian Treasury will be asking themselves as iron ore futures have had their first three-day rally since April this year.
Ripping higher, September futures are up up $2.27 to $95.77 a tonne but the downtrend since April is still intact at the moment and Chinese stockpiles suggest the risk is still on the downside.
In a market sense though, this is a great set-up for a break given the big fall and almost universal expectations of lower prices.
We’ll have to wait and see.