Texture from Reuters:
“Despite the steel production restrictions in China, I think demand for iron ore, particularly for high-grade materials, is still at a healthy level,” the trader said.
While the U.S.-Sino trade dispute has dampened global economic growth, it has not yet affected Chinese demand for BHP Group’s iron ore, Chief Executive Andrew Mackenzie said on Tuesday.
If you believe that then I’ve got bridge I will sell you. If were not for Vale, iron ore would already be trading in the $50s. To the charts:
Spot fell to a marginal new low. Paper was down much more. Steel is holding up on output cuts but inventories remain ridiculous. As iron ore falls so will it and vice versa.
$60 before year end.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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