It just brings into question the whole integrity of the Chinese market.
It has lost its ability as a price setting market.
It is now just controlled by the PBOC and the Government.
But for how long?
IO now below $50 per ton. This is undoubtedly to do with the Chinese economy in general starting to fall.
The Chinese property market is falling and so the steel production is down.
This means less demand for IO.
At the moment there are huge stockpiles of IO in China and they are using that ore, this has been a trademark of the Chinese IO markets in that they buy up big when the IO is down and stockpile, the question is who is supressing the IO price when they buy?
