Daily iron ore price update (ports)

Texture from Reuters:

“Investors remained cautious amid subdued Chinese steel margins and construction demand,” ANZ Research analysts said in a note.

“An undersupplied (global) market remains the reality and this has seen prices holding up near $90 a tonne,” ANZ analysts said.

Rubbish. The market is oversupplied and will get more so when Vale returns volumes. How do we know? Simple. Price are falling:

While inventories are rising at Chinese ports, hitting 134.1mt last week:

That’s too much supply for even apparent demand let alone underlying.

As we pass the restocking pulse into Q2 next year, prices will crash.

Houses and Holes
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