Iron ore will have to collapse again

It ain’t getting any better in Chinese property. Via GaveKal:

The role of construction is huge:

-40% new starts equates to -240mt of iron ore demand. There is no sign of this getting any better in H1. Nor will be any infrastructure offset over the year though there will be from H2,21.

Iron ore rose to $145.95 yesterday. Unless the property outlook changes radically and suddenly, iron ore will collapse again as all of the hot money piling in today wakes in fright and reverses.

Houses and Holes

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