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.