Via Credit Suisse:
Iron ore supply deficit to China continues – steel demand accelerated.
It is probably fair to say that almost every commodity analyst looking at the seaborne iron ore market over the last few years has calculated that the iron ore market is in over-supply and getting worse. But we have all been wrong – that is not what is happening at all since mid-year. Iron ore is in deficit. Supply has been trailing demand and the undersupply seems to be worsening. China’s Port stocks lost 2Mt last week and are now down 9Mt from the peak in late-June.
