Where’s the Chinese iron ore restock at?


A couple of charts from Morgan Stanley. Steel mill inventories are off their lows:


But port stocks are still falling:


It’s the top chart that has the correlation with the iron ore price and stocks still remain low versus recent ranges. More stocking ahead if the range holds but there’s no saying that it will.


On port socks, as I said yesterday, they lag price movements so I’d not expect them to turn for another few weeks yet.

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.