The ferrous jaws are closing, though we still need a price nearer to $90 for iron ore for steel enterprises to make sense.
With a mild cyclone season so far, price pressure is likely to continue into CNY, which runs from February 16 to February 22. Typically, there is some kind of bounce afterwards before we lapse again into mid-year.
However, this year the glut appears more severe and weighs against cyclical trends.
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