Via GLJ research:
Iron Ore Prices Have Been Getting Battered Lately, at a Time When Seasonal and Cyclical Factors Suggest Prices Should Be Seeing Some Support; but, Given an Array of Company Production Updates + Trends in Seaborne Imports + Structural Changes in Chinese Steel Production, We Believe we Understand
Why Prices Are “Bucking the System”. Over the past month, spot prices for the benchmark 62% Fe fines iron ore were down 13%, while prices for the active futures contract traded on the SGX were down 14% over the same timeframe; from their peaks observed over the summer, prices were down 31% and 36%, respectively (Ex. 1).
