Hot on the heels of Trumpian-size tariffs imposed by The Obama administration on a desperately glutted and mal-invested steel industry, the entire panic-buying “well the market is always right”, “China is recovering” narrative based rally in Chinese commodities has crashed back down to earth with an incredible thud. As one veteran trader in the China commodity markets put it “everything is plunging… except cotton,” with Iron Ore, and Rebar down 7% today…
At least one industry executive “got it” – Baosteel’s Zhang: “The price rebound is not beneficial to the overcapacity situation…. It will delay the shutdown of (inefficient) capacity.”
How right he was…
Dalian Iron Ore has collapsed 30% in a month, down 7% today…
This post was published at Zero Hedge on 05/22/2016 –.
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