Steel production and iron ore stock piling are the key to the...

Steel production and iron ore stock piling are the key to the iron ore price.

if global consumption of steel goes up and iron ore supply does not increase, iron ore prices will rise.

If Chinese steel mills reduced production, but global demand for steel remained unchanged, the price of iron ore could spike after an initial downturn, as steel mills ilikely increase margins and therefore chase more output.

Since 2013 i’ve been investing based on the following.

1)A dummy by China to indicate a move to domestic consumption to allay US concerns

2)A second wave of Chinese stimulus through infrastructure spend. (Now happening)

3)Another dummy as per point 1, likely in the
next 2-3 years

4) Point 2 again, no idea how long that lasts

5) a credit crisis in China, another global crisis, prob mid 20s