The iron ore rally hasn’t made much sense for while and that just got worse with the China steel PMI:
June May April March Feb. Jan. Dec.
2016 2016 2016 2016 2016 2016 2015
—————- Index ——————
Steel Industry PMI 45.1 50.9 57.3 49.7 49.0 46.7 40.6
Output 42.5 53.7 60.4 49.8 49.5 45.6 38.5
New Orders 43.3 52.7 65.6 53.3 50.9 49.9 40.9
New Export Orders 51.3 58.1 52.5 36.9 46.2 50.7 47.8
Inventories of Finished Goods 49.3 50.2 34.9 37.7 44.8 34.4 39.5
Inventories of Raw Materials 49.2 48.4 54.6 52.6 51.1 44.5 35.7
And the chart:
