From ANZ:
Physical iron ore prices fell 2.3% to USD138/t, as Chinese steel mills stepped out of the seaborne market and instead drew down iron ore port stockpiles to replenish inventories. Although steel mills are calling for a correction as seasonal demand softens, we think the downside would be limited due to lower stockpile levels. Major steel producers have increased prices for September finished steel products, which should also support sentiment. On the other hand, coking coal prices continued to move higher, as stronger steel demand in China and reports of tighter domestic supplies supported the seaborne market. Reports showed monthly coking coal contract prices for September concluded between USD137-141/t, slightly below the third quarter contract of USD145/t.
