Think that article through. By the end of August the steel mills shut down. They have no need to restock as they can't make steel for a while.
Port stocks grow, and grow very quickly as the increasing volume of IO comes to China from all the players like RIO and BHP that are slowly but surely increasing supply. Then soon RH adds 55mt/a to the current glut.
What happens to price during this time?
You have to remember that during this period AGO have 70% of their IO hedged in the mid 50's. So if the price goes above this level, they lose on some of the hedges, while making money on the IO.
The current costs though are not $50/t, that is only when they reach 14-15mt/a rate in December.
So right now they are probably treading water.
AGO Price at posting:
3.3¢ Sentiment: Sell Disclosure: Not Held
