Iron ore prices for December 14, 2018:
Spot up. Paper up. Steel up. There’s nothing the iron ore Costanza market likes more than crashing Chinese demand data. That’s how conditioned it is to stimulus these days.
My outlook is unchanged. Strength through new year and January then weakness as demand falls away. I don’t think China is ready for more kitchen sink stimulus yet though I too think it is coming.
My guess is we’ll see lots more iterations of stimulus that will fail to halt slide in growth until the kitchen sink arrives mid-2019.