China steel production bounces back in early June

The latest high frequency steel production data from CISA suggests that the fade out at the end of May was premature, with production levels bouncing back to the average seen over May as a whole.

This pick up in production along with low inventories has helped iron ore bounce back to the $120/t mark in the last week or so.  Looking further ahead though, the risk is the price goes lower rather than steadies at these levels.