Morgan Stanley Calls Yet Another Top in Steel

The fuck out of here with this shit. The ghost of Andrew Carnegie will ensure the price of steel climbs upwards of a billion.

“Our short-term forecast still features a September-October seasonal pullback as China’s steel demand and production rate abates,” analysts including Joel Crane wrote in a report. Over the past 10 years, iron ore prices have on average dropped in September, October and November, according to the report.

The “season is mature now; the reliable September-to-October pullback is nigh,” Crane wrote, adding that rising mine production in Australia and Brazil may also help to blunt prices. “Beyond the seasonal pullback, ore prices should also become increasingly capped in the second half by ongoing supply growth.”

It’s important to understand that the analyst community has been calling for a top, based upon trivial things such as macroeconomics and supply and demand superficialities, for more than a year. Little do they know, the price of steel is climbing on the same gas, the same speed, that is driving stocks. The price of steel doesn’t bend the knee to seasonal factors or Chinese economic slowdowns. The price of steel is driven by the balls of central bankers. Period, end of story.