Daily iron ore price update (softness)

Iron ore prices for September 7, 2020:

Spot still strong. Paper too.

China imported 100.4mt of iron ore in August:

I still think we’re roughly at peak imports. Steel exports were buggered, as you’d expect:

Empty apartment sales are softening:

 

To wit:

China Evergrande Group kicked off a nationwide sales promotion with its deepest ever discount on all real estate properties, part of the developer’s effort to boost sales and meet its target of cutting debt by half.

The promotion on residential real estate comes with a 30% price cut, according to a statement from the property developer. That’s the heaviest base discount Evergrande has ever offered since it began a signature promotion twice a year in 2011, according to Bloomberg calculations based on previous marketing material.

That is not normal behaviour. These are stimulus developers not businesses. There are some signs of softening in China’s building economy. They need MOAR!

We’re into September now. A drawdown in pricing should come soon. Then up into NY. Booms peaks mid-next year and it’s all downhill from there.

David Llewellyn-Smith
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