The ferrous complex bifurcated yesterday as spot corrected lower after the day before’s price wackness. Paper shot up overnight with a broader dirt rally. Steel has not updated:
A snippet from Capital Economics sums where we are at:
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The last few weeks of pump and dump have been a game of politicised speculation. The price spike began with the Australian declaration of war over Taiwan and the Chinese response in cutting dialogue. Then it was slammed back down by the Chinese jackboot on futures markets.
Neither is a long-term price driver and now we are equal so we can get back to fundamentals.
$140 by year-end seems about right. Below $100 is more likely by Q4, 22 unless China panics and juices growth again before then.