Texture from Reuters:
“Steel mills are reluctant to buy iron ore, waiting for prices to further go down,” a Shanghai-based trader said.
…Iron ore’s reversal of fortune and the escalating trade war prompted Jefferies to lower its ratings on several miners and reduce its commodity price forecasts.
“A slowdown in construction and a decline in Chinese manufacturing and exports due to trade wars would be significant negatives for metals’ demand, even if fiscal/monetary stimulus leads to some recovery in the broader Chinese economy,” the brokerage said in a note on Tuesday.
And there you have it. To the charts:
I see no reason why iron ore will not sink right back $60 before year end as Vale brings back another 30mt that nobody needs. Then below $50 next year as the global recession deepens.