Chinese reopening bad for iron ore

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Last week I moved to sell major miners. The rally is overcooked for what is to come. 

The Chinese reopening is going to free up both coking and thermal supply. Iron ore and base metals demand may well fall as infrastructure slides and property enjoys an L-shaped recovery.

Finally, as energy prices normalise, there is every chance that Chinese steel recycling will return to its secular growth trend.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.