Texture from Reuters:
Iron ore pulled back during afternoon trade amid market talk that China’s top steelmaking city of Tangshan has ordered deeper production cuts over a four-day period – Aug. 18-Aug. 21 – to curb pollution. Reuters could not immediately verify this.
Expectations that iron ore supply will further improve also weighed on prices.
“Forward supply conditions continue to get looser which, coupled with expected pick-up in inflows into China, are all price negative developments,” said Hui Heng Tan, analyst at commodities broker Marex Spectron.
There’s oodles of ore and more coming. A fact given life by rising port stocks, up another 1mt last week to 23.2mt amid falling prices. To the charts:
Spot eased. Paper is stuck. Steel is in palliative care waiting for the axe to fall.
No change. Lower ahead.
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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