The ferrous complex was roughly stable on October 20, 2021 as spot eased and paper firmed overnight. Steel was strong yesterday:
Chinese port stocks of iron ore are rising fast, just shy of 140mt last week:
With steel output cratered, the “days of use” port inventory ratio will already be near records. Just another very bearish signal among so many that I’ve lost count.
But, for now, nothing matters thanks to coal chaos and the furious mania for all things dirt. 10% moves are now the norm for the once sleepy coking coal futures market:
Last night’s action resulted from China dropping the jackboot on coal markets, a la iron ore earlier this year.
I would like to say it is over but I can’t. A cold northern winter and off it’ll go again, relevance be damned.
But, be warned, it will end soon, and in a firey crashing asteroid that will put the iron ore cratering of 2021 to shame.