Here are the iron ore charts for August 1, 2014:
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Paper markets deteriorated across the board despite the firm Chinese PMI, a bad sign. In physical, spot eased and port stocks fell 450k tonnes but remain huge. The BDI cape dropped 1.5% and is now just 4 lousy points above a post-GFC low.
We are definitely plodding through a mild destocking and its clear enough why. The July steel PMI that was out Friday showed a marginal increase to 48.6 describing ongoing mild contraction in the sector. The Chinese non-manufacturing PMI was out over the weekend and confirmed the malaise:
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