The ferrous complex was weak on November 4, 2021 as paper fell more overnight and steel is in meltdown. Benchmark spot didn’t trade owing to a Singapore holiday:
Steel is in meltdown:
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I see nothing to stop this. Chinese demand is falling faster than mills can cut output. There’s 120mt of EAF yet to return. Iron ore is still far too high. Coking coal is screamingly mispriced.
There is only one conclusion to draw. Chinese steel prices will free fall and it will flood the world with excess production busting all global ferrous prices.
In my view, unless or until China turns its property ponzi scheme back on, the ferrous complex will be the split atom at the centre of a nuclear global commodities complex meltdown that will take in all metals and energies before it is done.