Sorry brazilguys, I know your RIO is big and meaty and I know you’ve already dropped a long way, but there’s plenty of reason to see RIO as a major hedge play to balance longer stuff.
Here’s Reuters with a short report to whack home the issue:
BEIJING (Reuters) – China’s crude steel output was 1.42 million tonnes a day in February, equivalent to about 520 million tonnes a year and a “worrying oversupply”, Deng Qilin, chairman of the China Iron & Steel Association, said on Friday.
According to a Reuters calculation, that means February output totalled 39.76 million tonnes, a 5.2 percent increase on the 37.79 million tonnes produced in December 2008, a longer month and the last month for which data is available.
Deng, who is also president of Wuhan Iron & Steel Group, said his company would cut output by 15-20 percent and aimed for sales of 120 billion yuan ($17.55 billion) this year. ($1=6.839 Yuan)
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UPDATE: Not short yet, will look for $13 on Monday