China’s top securities regulators are speeding up the approval process for qualifying foreign institutional investors, clearing the way to invest in what is now the locally restricted China market.
The iron ore spot price has collapsed from $135 per ton to $111 per ton in just two weeks thanks to steel de-stocking, despite a broad-based commodities rally that began in July. Unlike copper (JJC, quote), iron ore can’t be stored and in an overcapacity situation, producers have to sell distressed stock.
The absence of a dedicated iron ore ETF has caused commodity-oriented traders some consternation when iron prices are soaring, and relief in the opposite scenario. But those looking for a way to trade the iron mining industry have a few more options.
Most of the emerging market steel stocks have spent the last few weeks — months even — in deep decline. At this point, all are now facing some serious resistance that will make it hard for them to recapture the ground they’ve lost. But there’s one exception.
A combination of policy moves and a slowing economy have weakened the Brazilian real by 4.8% since the beginning of March, making it the worst performing currency tracked by Bloomberg. For exporters, this is a welcome change from the 8.7% appreciation in the first two months of the year, consequently making it the best-performing currency.