Iron ore charts for July 17, 2016:
Spot eased, paper fell, rebar average appears to have topped. Chinese port inventory grew another 900kt. Looks like the top is in for the year given Q2 Chinese data is now passed and suggested a gentle fade in activity ahead but not enough for new stimulus.
Port stocks are an especially ugly indicator given they’ve lift 4.9mt in the past month indicating an annual excess to underyling demand of 56.4mt of iron ore. Take that out of the equation and iron ore is back at $40. And take it out the market will before year end, and more, as destocking begins.
