Forgive the lack of charts today. I’m on the road. Tianjin benchmark was flushed 7.4% or $5 to $63. Qingdao spot got hammered 6% or $3.56 to $66.09. Dalian futures fell another 2.9% overnight to 472 yuan. Coking coal futures were monstered 4.1% to $186.60. SGX twelve month futures were pounded $2.94 to $55.31. Rebar average has eased to 4282. Thermal coal is still deluded at $97.50.
We’ve got further to fall yet. Typically with these things we drop at a good clip until capitulation flushes the market. 2017 lows are good first target. With winter shutdowns to limit steel output, it’s uncertain how fast raw materials prices can rebound, either.
World Steel release August global output:
