Morning Mumble: Any Old Iron Ore - Has a bottom been found or have the Chinese stopped reselling back to market, merely a lack of supply for November?

It was interesting we had a swallow fly across the iron ore markets in Asia and Australia overnight calling the bottom to the Iron Ore prices. Marubeni expects iron ore prices to climb in 2015. Now it's agreed depending on your view of 2015 is that January or December. Perhaps this is being picky in terms of putting pricing expectations into play? 

What is absolute is at the current prices the surplus and discount producers are under significant strain, LOND (London Mining) and African Minerals (AMI) are prime examples. There's more hope for AMI, but all the same in the same corner as LOND.

Overnight we had a supply bottleneck which caused Iron Ore to appreciate, followed shortly after by most ASX listed producers. $83/t a is a cheer to be had, but remember there are not large Asian sellers in the market de-leveraging their balance sheets due to cashflow problems. The trend certainly does look to continue, save for greater supply coming to the market again, a bounce to $87 is possible, but one would be throwing darts in the dark currently. 

Investor confidence is contradicting the construction industry's supply and demand issues in China; more concerning is there's been little improvement despite liquidity coming to the market. It would be wise to monitor.

Atb Fraser