Iron Ore Ultimate Health Chart, page-7

Hey TT,

This is my take mate. Of course, this is just an opinion and could be way off.

Supply side:


Oz IO shipments

Brazil IO shipments


Maybe 5 years ago, there was a demand element with this as some majors ramped up supply to meet demand but there is unison among the majors now as they put emphasis of margin over volume.


Demand side:


Steel Inventories probably no 1 as low inventories likely driven by downstream demand ie strong infrastructure/housing spending.
More likely to produce more if inventories low.


If inventories low, will likely lead to decision to increase steel production or higher blast furnace capacity utilisation %


Iron ore stocks if low at mills will need to be replenished from ports to produce desired quantities of steel


Both demand and supply:


IO at ports are pulled from both demand and supply indicators.


For example, High constant supply from Oz and Brazil and higher than normal steel inventories will likely see Port IO stocks weighted towards an increase.