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.
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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