The ferrous complex stalled again on July 27, 2021 as spot fell, paper too and steel as well, finally:
The culprit was yesterday’s news that China will likely impose new restrictions on steel exports, which adds to a long line of regulatory efforts to dampen iron ore prices. My view is that each is pretty useless but they all add up to real pressure at the margin.
Meanwhile, despite big recent falls in output, Chinese steel inventories are still very high for this time of year:
This tells us that underlying demand is not what it was, either. Some of this is seasonal but even so it’s another soft signal.