https://www.ft.com/content/488c5486-966f-11e9-9573-ee5cbb98ed36

Supply squeeze in iron ore catches miners on the hop

This is a key quote from a pretty decent FT article.

“The supply squeeze is on now,” said Christopher LaFemina, equity analyst at Jefferies in London. “We suspect that steel mills have been buying at current high prices to partially replenish their depleted inventories before the market tightens even further and panicky buying sets in over the next two months.”

And a lovely snapshot:



That's really it, you see- inventories down, slow season for steel production in China ending in a month, demand up, and no one wanting to get caught short (excuse the pun) on supplies. Buy now to preventing having to pay through the nose later.