Spot prices crashed. Paper too. Steel is weakening again. The culprit was easy to find, via Reuters:
Executives from eight steel firms representing 30% of China’s steel output, including China Baowu Group, HBIS Group, Jiangsu Shagang Group and Ansteel Group, gathered at the China Iron and Steel Association (CISA) on June 27 in Beijing, according a document with the minutes from the meeting that was reviewed by Reuters.
…The eight steel mills will create an investigation group, led by Baowu and assisted by the others, to look into the pricing methodology of imported iron ore, to coordinate with futures exchanges to stabilize the market, and to plead to government departments to “sustain market order”.
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