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.