Ok so here's a question: why has the price of coking coal collapsed by a significantly larger margin than iron ore? Both are used largely in the production of steel. Both inputs are largely unsubstitutable in the production of steel and demand for them is price inelastic.
Is it because the proportional increase in coking coal has been significantly higher than that of iron ore? If so, when production of iron ore has caught up in proportional terms with coking coal, will iron ore have a proportionally lower price as coking coal?
In other words, is coking coal foreshadowing an even further reduction in the price of iron ore as the big miners keep cranking up production?
