China Steel Gloom Prompts Mills to Doubt Iron Ore Rally
- CISA chief calls iron ore miners' profits unsustainable
- Market remains massively oversupplied, says CISA's Li
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For any emerging bulls out there, China’s top steelmakers’ group has a sobering message: the global iron ore market is grossly oversupplied, demand in China is faltering and there’s a severe glut of steel.
“Don’t let wild, short-term price swings distract us from our analysis of the market,” Li Xinchuang, deputy secretary-general of the China Iron & Steel Association, said after iron ore surged on Monday by the most on record. “How can the rally possibly be sustained?”