The ferrous complex continued on its merry way higher on April 4, 2022:
Chinese markets were shut for the Qingming Festival but that couldn’t stop spot.
I am no less uncertain about the underpinnings of this rally today. China looks to me to be entering a recession. All of Eurasia, in fact, and the US is every chance of following.
Coal prices have started to deflate post-Ukraine shock:
As gas prices prices have crashed:
This will help:
China’s top liquefied natural gas importers are cautiously looking to purchase additional Russian shipments that have been shunned by the market in a bid to take advantage of cheap prices.
State-owned companies including Sinopec and PetroChina are in discussions with suppliers to buy spot cargoes from Russia at a deep discount, according to people with knowledge of the matter. Some importers are considering using Russian firms to participate in LNG purchase tenders on their behalf to hide their procurement plans from overseas governments, the people said.
There’s a race on now between the looming global recession destroying demand and Europe’s need to restock gas for next Winter. I know not which will win but while it lasts it lends support to iron ore via sentiment and by keeping power-intensive steel recycling untenable.