The ferrous complex held on June 15, 2021 as many other commodities rolled into the big plunge. Spot was stable, paper up a bit, steel down:
Steel was actually down yesterday but I didn’t have prices for a few days.
The news is another accident, this time in China where more supply has come off temporarily:
Meanwhile, Chinese authorities ordered the closure and inspection of all non-coal underground mines in Shanxi province following the flooding of an iron ore mine in Daixian.
In numbers, that’s a temporary annual supply gap of 14.6 million tonnes from Vale’s Timbopeba & Alegria mines and 14.97 million tonnes of concentrate from Shanxi province.
“We estimate this latest rally will be sustained for the next few weeks given that it is fundamentally driven by the temporary removal of 30 million tonnes of annual iron ore supply,” Navigate Commodities said in a note.
A stay of execution then. I still see decent pricing for a few more months then trouble.