Truly,where is the oversupply of Iron Ore.

In case you had not thought about it.

If Iron ore production was in excess of demand then there would be wharehouses full of steel and Ports overflowing into the sea.

The reality is none of the above exist.Actaully the oposite.

What does exist is a scramble to maximise sales,minimising purchases,while markets are falling,by diverting steel sales to where there is a quick buck to be made with empty wharehouses and running your supply chain empty.

Simply if your a steel mill its called clear the warehouses as the next lot of steel you make will be cheaper.Get rid of the expensive stuff as quick as you can to minimise losses.

That's what a falling commodity market does for a dependent business.

When restocking comes,it pays to be first to restock once prices turn as they have started to.

I have no doubt the mills with longterm ambitions won't want to see their suppliers of their wealth out of business,so it would appear the floor will end up being around $60US to keep them producing,until bigger more economic suppliers join the market and they allow it to fall lower.

Until then enjoy the sunshine although for many there is little money to be made at $60/ton given quality/FE discounts.

DYOR + DYODD