Exactly why are Chinese ore prices going up?

Some interesting questions were posed by a reader in regards to the higher Chinese ore prices. Any answers?

(1) How could Ore prices even go up now? Piles of stock lying unused and unmoved in China. Not that it’s time for SA to consume more Ore. A few weeks ago Turkey was unable to sell even at US$280-285/MT. There must be some new dynamics. (2) Wondering at such historical high Ore build-up in China, if the Ore prices are still going up, what would happen when Ore stocks start to come down. (3) Just observed, when Glencore set the European Benchmark of US$ 1.42 / lb for Q2, whatever prices that were quoting in China, India, and Korea has already been crossed consistently. Getting a lower European Benchmark for Q3, thus, would be directionally opposite.

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