Daily iron ore price update (still steel)

Apologies for lateness today. Been wrestling with a Telstra bot all morning. Iron ore prices for May 27, 2020:

Not much in news. Here’s the latest steel inventory chart:

Looks impressive but it isn’t. Seasonally-adjusted the stock is just as high as it was at its peak. The reasons why is that demand remains relatively weak:

But Brazil is now sick as a dog, number two only to the US, so the supply questions remain:

Perhaps encouraging. But Brazilian testing is so bad that we have to take the results with a  grain of salt.

Still, if the improvement is real then I’d expect seasonal weakness into June to prevail even more on the price.

 

David Llewellyn-Smith

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