Spot at new bubble highs. Paper even higher. Steel is still going nowhere indicating that steel mill margins are getting smashed. The charts:




For me the news of the return of Brucutu is the beginning of the end for the bubble. There are further supports ahead:
- the PBOC will cut interest rates the moment that the Fed does;
- trade war rhetoric will ebb and flow;
- as Vale volumes return, steel mills will restock inventories;
- Vale volumes have not returned yet but 50mt will over H2.
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