A big drop in iron ore consumption and price goes hand-in-hand with a drop in met coal usage and the collapse in the BDI (Baltic Dry Index).
Even the Chinese, who fouled up Dr. Copper’s record by stockpiling above their industrial needs, using it as a substitute for T-Bonds as a store of value, aren’t going to stockpile iron as a store of value. If steel consumption is forecast to be down, iron usage and price drop.
Not a good indication.
A met coal mine near Trinidad, CO “temporarily” laid off most of their workforce back in June.
The “temporary” idea was to give the market 60 days to clear the “surplus” and demand would pick up again.
Well... it’s been more than 60 days and the mine isn’t re-hiring - nor do they think they will anytime soon.
This mine’s output is shipped in toto to China.
Steel consumption is a pretty good indicator of construction and durable-goods production (cars, appliances, machinery, etc). Looks like people are sharply reducing durable-goods orders, deciding to make what they have last a little longer before replacement.