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OTC volumes decline in August as spot market lacks direction

August 30, 2010 - 00:00 GMT

Spotlight - Mixed month as deliveries trade at more than $140, but market remains confused

August was a mixed month for the over-the-counter (OTC) iron ore swaps market. Deliveries in August and September both traded in excess of $140 per tonne close to the beginning of the month. But spot market uncertainty and a dearth of new physical business caused confusion among forwards traders....

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Comment & analysis

COMMENT: When super-cycle poster child BHP Billiton trims its plans...

BHP Billiton is one of the poster children for the commodities super-cycle: a mining company whose immense upstream assets in copper and iron ore have fed the industrialisation of China since the early years of the 21st century and enabled it to return $52 billion to shareholders between 2001 and 2011.
LORD COPPER: There is nothing to fear after JP Morgan loss ...

So, here we go again. Another bank, another huge trade gone bad. This one doesn’t even appear to have been a case of rogue trading; a whole desk seems to have been operating with the full knowledge of the management and/or risk committee.
COMMENT: Keep calm and carry on?

The decision of the Indonesian government last week to uphold the ore export ban and taxes from May 6 has failed to calm the nervous market. So far, both producers and buyers have displayed an impressive tolerance level to the export uncertainty. But how long will their patience last?