Daily iron ore price update (another run)

Spot jumped. Paper went nutso. Steel was firm but is still stuck.

It was all about Chinese data which showed a big push into MOAR empty apartments:

I just don’t think that this matters terribly. Record steel output:

Hasn’t triggered much activity in Chinese iron ore imports even accounting for recent supply weakness:

Presumably owing to the rise of scrap inputs and some rebound in local iron ore production. Iron ore price rises this year have been a supply side story and price falls will come as it is resolved over H2. There is some evidence of that already in stabilising port stocks which are unchanged for 3 weeks at 115mt:

Chinese iron ore inventories have been drawn down and will take time to replenish but this is still a market to sell not buy as supply returns.

David Llewellyn-Smith
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