We evaluate the price development for the steel and raw material markets based on selected charts on a monthly basis. This is similar to the procedures used by chart analysers for the evaluation of the stock exchange markets. Advantages of such chart analyses are: The chart value / development of the chart contains all positive and negative information. Furthermore it shows the expectations of the participants in this market for the future.
Prices for iron ore made a strong swing upwards.
We took the comment of the US Bank Jefferies last month as indicator to expect a high demand from China already. Please view in this context the chart below which shows prices in Chinese Yuan.
Suppliers as clients are currently wrestling around the resistance area at 600,00 Yuan.