Daily iron ore price update (My god, China now has a steel glut)

Iron ore was unchanged yesterday at $94. It just keeps getting worse for the ferrous complex. China now has a steel glut. Levels are higher than this time last year which is very high:

But steel output is well below 2020:

So the inventory to sales ratio is climbing fast despite all of the output cuts.

Just as bad, iron ore inventory is going through exactly the same thing. Supply is rising:

Even as inventory to sales is above average and rising:

Unbelievably, China now has a steel glut plus a fast developing iron ore glut as its economy and construction sector screech to halt.

Iron ore is going to fall to $60 at least as steel prices begin to crash (which will go global) and then coking coal follows.

The carnage is far from over.

Houses and Holes
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