Find below the iron ore charts for January 29, 2014:
Rebar futures are going sideways too.
Spot iron ore hovered near their lowest level since July, pressured by weaker steel prices in top consumer China and as trading activity winds down ahead of the Lunar New Year.
“It’s no mystery that this market is winding down ahead of the holiday. There is a lack of buying activity and there are also few cargoes around. We may see a good start for the market in February when China returns because mills will have to restock and also more construction projects should get underway in the northern part,” the trader said.
Yeh, we may. Then again, there is little evidence to date of much destocking in iron ore and plenty that steel inventories are high:
When they return, if mills get the sense that demand is going to be lacklustre, and their margins remain lousy, then the risk if for accelerating destock not restock.
