Iron ore prices for Feb 1, 2021:
Spot and paper down. Steel has not updated. Port inventory rose last week to 126.2mt:
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Yesterday China steel PMI was poor. The headline number is OK at 43 with new year output pumping on the inventory build. But new orders have cratered:
This may be temporary based upon virus disruptions. Even so, it opens the distinct possibility that mills will destock their arses off when they return from Lunar NY, ten days hence.
The price is very high. There are still restocking, supply issues, geopolitical and weather supports.
But slowing Chinese demand is locked in for H2 and there is s good chance that iron ore is going to take a tumble before then, especially after CNY and in May:
Sell the rallies.