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at 9:00 am on July 26, 2021 | 0 comments
The ferrous complex stabilised on July 24, 2021 with spot up slightly and paper too. Steel has not updated:
Since January, I have held a “sell the rallies” position for iron ore. I am now moving to an outright “sell” position. There are five reasons.
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First, there is early evidence that this time it is different in Chinese attempts to curb steel production and drop commodity prices. In the past, this strategy has always failed because a fragmented steel mill sector boosted output into improving margins as steel prices rose. This drew in more iron ore, passing price rises to upstream sectors.