The ferrous complex blasted off on Tuesday 6, April as Chinese steel output restrictions backfire spectacularly in the form of skyrocketing prices. Iron ore spot and paper followed:
Advertisement
Ah…those central planners. They never learn. As noted many times previously, when you mess with steel output to try to sink iron ore it nearly always goes the other way.
So, where does this leave us? I expected strong pricing through April so there is no change to the outlook in this yet. But the higher steel goes the greater the risk iron ore spikes with it before it comes down, so average prices are better for now.
Advertisement