Iron ore futures rose yesterday and overnight on the Dalian exchange, presumably on the hope of fresh Chinese stimulus. There probably is some targeted version coming but it is not going to help steel, which is collapsing:
The China Steel PMI was a complete write0ff:
Judging from the steel industry PMI surveyed and released by the Steel Logistics Professional Committee of the China Federation of Things, it will be 35.2% in May 2023, a month-on-month decrease of 9.8 percentage points, and a month-on-month decrease for three consecutive months, indicating that the operation of the steel industry is weakening. The changes in the sub-indexes show that the market demand continues to run weakly, the production of steel mills declines again, the prices of raw materials are comprehensively obvious, the prices of steel products fluctuate and go down, and the operation of the steel market is relatively sluggish . It is expected that in June, the steel market demand may continue to decline, the production of steel mills will be under pressure to reduce production, the price of raw materials will remain weak, and the price of steel will fluctuate at a low level.
