Daily iron ore price update (NDRC hammer)

The ferrous complex is fighting a pointless battle to stay alive:

Steel output was weak during the first 10 days of February. This is more than Olympics:

Port inventories keep surging:

And the NDRC is on the warpath:

Chinese authorities will prevent “excessive hoarding” of iron ore and guide port firms to ensure that traders of the commodity bring inventories back to a reasonable level as soon as possible, the powerful state planner said on Wednesday.

The decision follows a symposium called by the National Development and Reform Commission (NDRC), the market regulator, ports association and some port firms, according to an NDRC statement.

“The meeting studied measures including greatly shortening the free storage period for iron ore traders, raising costs of portside hoarding, and preventing excessive hoarding,” said the statement.

China’s state planner has issued six statements since late January targeting fast-rising prices of the steelmaking ingredient, urging information providers to ensure the accuracy of published data and trading firms to release high stockpiles.

Demand is very weak. Supply is about to flood back on seasonality. Chinese authorities are sitting on the market like an angry dragon.

Anybody buying this market is doing so on a wing and a prayer.

Houses and Holes

Comments are hidden for Membership Subscribers only.