Texture from Reuters:
Investors are cautious as prospects of China’s economy remain uncertain, a Shanghai-based trader said. Demand can be maintained at the current level but is unlikely to grow further, said the trader, adding that supply of iron ore is relatively sufficient now.
The question is not underlying demand. It is weak. The question is apparent demand and how far Chinese steel mills drive any post-Vale accident restocking pulse. This picture is quite murky given it has disrupted typical seasonal patterns.