SHFE and SGX futures were slaughtered yesterday. Steel futures are at new lows and this is the leading indicator:
Mad Dalian is also at new lows:
Coking coal too:
Scuttlebutt is cutting:
“Last week’s blindly optimistic and irrational sentiment rally is now being rationally unwound, as the market once again comes to terms with the realization of terrible downstream steel demand-side fundamentals in China”, said Atilla Widnell, managing director at Navigate Commodities.
“Despite numerous policies aimed at stemming the downturn in house prices and corresponding losses in wealth, it looks like the market has made its peace that these measures will not directly or immediately contribute to healthier construction activity and associated steel consumption,” Widnell added.
I reckon we are poised to go to $80.
