Daily iron ore price update (My god, China now has a glut of steel)
It is only getting worse for the iron complex. China now has a glut of steel. The levels are higher than at the same time last year, which is very high:
But steel production is much lower than 2020:
Thus, the inventory-to-sales ratio increases rapidly despite all production cuts.
Equally bad, the iron ore inventory is going through exactly the same thing. The offer increases:
Even though inventories to sales are above average and increasing:
Incredibly, China now has a glut of steel and a glut of rapidly developing iron ore as its economy and construction industry come to a halt.
Iron ore will drop to at least $ 60 as steel prices start to collapse (which will go global), then coking coal will follow.
The carnage is far from over.