The ferrous complex rallied on April 26, 2022:

The CBA is making sense:
There are 874 words left in this subscriber-only article.
Get your first month for $1
Commonwealth Bank (CBA) director of mining and energy commodities research Vivek Dhar said the drop came as a result of COVID-19 lockdowns in China and what they could mean for demand of Australian ore.
“Markets are worried that Beijing in particular maybe exposed to more severe lockdowns, like what we’ve seen in Shanghai,” he said.
Mr Dhar expected the next few months would see “demand weakness” from Chinese steel mills, which would likely drive the price lower.
That looks about right to me. Chinese monetary and fiscal stimulus transmission is inhibited by the property crash and OMICRON so yesterday’s announcement is pretty meaningless.
Mills are still hugely overproducing steel:

But I suspect that this is because they know that severe curbs are coming in H2 in a repeat of last year. Steel inventories are not falling seasonally.
I still don’t necessarily see iron ore breaking down any faster than the broader commodities mania but that is coming anyway.
Not investment advice!
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
- Thank god that’s over - May 22, 2022
- Highest interest rates in galaxy to pop Australian property bubble - May 20, 2022
- Bear markets and recessions - May 20, 2022
YOU MAY ALSO BE INTERESTED IN
Daily iron ore price update (steel shred)
The ferrous complex was pounded on May 18,
Daily iron ore price update (correlation is king)
The ferrous complex was soft on May 17, 2022
Daily iron ore price update (at a loss)
The ferrous complex firm on May 16, 2022. Spot
Chinese economy busts, steel booms!
Chinese April data was out late yesterday and