Iron ore prices for January 28, 2020:
Spot down. Paper down. Steel OK. I’m going to call it today: the peak is in. In short:
- so far, La Nina disruptions have been minimal but this remains the biggest upside price risk;
- Chinese inventories are still low but there appears limited appetite to restock further with prices so high;
- the CCP has squashed Dalian volumes;
- supply is steadily returning with FMG, BHP, Samarco and Vale all pumping to the tune of 70mt more than at the 2019 bottom.