Spot prices stalled. Paper fell marginally overnight. Steel has flamed out as Chinese steel supply restraints have proven pretty loose, via Reuters:
Tangshan, the steel hub of China, imposed last month a set of output restrictions on producers, which will remain in place until August 1.
“The policy declared in Tangshan turned out to be not as strict as we heard last month,” said a Shanghai-based steel trader, echoing a report by an industry website, which Reuters could not immediately verify.
“That means some mills don’t need to cut so much production this month,” the trader said. “They may be allowed to continue to produce during certain times, and this will increase supply of steel.
Hard to see here another spur higher for iron ore comes from if steel prices are going to fall back. Chinese data is only just this side of terrible. More supply is on its way. Prices are hilariously above any point needed to trigger even more.
Better short than long!