Steel, iron ore hammered

Ugly day in China. The excitement around a supposed move by the PBoC to unleash a monetary response to the slowing economy has faded, the bounce was sadly of the deceased feline variety. Rebar and Dalian iron ore futures have been crushed today, as Reuters details. Little chance of avoiding a new low for spot iron ore now.

7-handle next week is likely. Keep an eye out for further capital raising and then bankruptcies in the junior miner space. (Not that you’ll need to remain especially attentive, it’s going to be quite the spectacle.)

Update: spot slumped to $81.70 (corrected from $81) on friday, a new low.