The ferrous complex was soft Friday 16 July, 2021 as spot eased, paper too but steel was stronger (though note that the gains were over a few days):
As warned last week, whenever the price approaches the $220 level, out comes the jackboot, from China over the weekend:
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“We will coordinate with relevant departments to ensure the stability of bulk commodities supplies and prices… guide upstream and downstream players in the industrial chain to stabilise production, supply and marketing of raw materials.”
“In responding to the risk of the market’s price fluctuation, we must resolutely crack down on hoarding, malicious speculation, and the bidding up of prices.”
Note that the rhetoric is now focussed entirely upon “bulk” commodities. It is iron ore, coal and LNG that are upsetting Chinese officials.
Or, put another way, it is Australia that is upsetting Chinese officials.
Or, put another way, it is Chinese officials that are upsetting Chinese officials, because their self-defeating trade war is driving bulks mad.
Bans on Aussie imports last week sent thermal coal to decade highs at $136 and coking coal launched to $200. LNG is already trading at unseasonably high levels around $12Gj.
China’s trade jackboot on Australia has only served to deliver it the greatest commodity income boom in our history, driving prices wild and the AUD down.
What a pack of muppets.