Here are the iron ore charts for February 11, 2015:
Erosion day with not much to cheer about. I continue to expect to see $50s ahead, and not much rebound after that. Reuters has texture:
“Steel sales are very poor and even if iron ore prices have gone down, most Chinese mills are still incurring losses,” said a trader in Shanghai.
A flurry of buying activity helped push up the benchmark price with some Chinese traders shopping for cargoes arriving in March although there were few steel mills buying, TSI said.
“The recent pick-up in prices is supported by March iron ore delivery when construction activity is expected to begin reviving following a seasonal slowdown,” ANZ Bank said in a note.
Meh, we shall see.
In wider news, the castle in the air called Simandou is floating overhead, from the WSJ:
Mining companies struggling with depressed commodity prices are about to have the opportunity to bid for one of the most sought-after iron-ore deposits in the world, testing the industry’s appetite for new iron-ore supply at a time when many experts say the world is awash in the steelmaking component.
The Guinean government plans to auction the northern half of the massive Simandou iron-ore deposit in the next few months, Guinea’s Minister of Mines Kerfalla Yansane told The Wall Street Journal on the sidelines of the Mining Indaba conference in Cape Town, South Africa.
“We’ll put it on the market and call for companies to come and compete,” Mr. Yansane said.
That’ll be a lonely event. With the $30 billion price tag, prices hitting new lows everyday, mines closing all over, and legal fallout around who owns it all, why hold the auction now?