Commodities: "How low will iron ore go?"

From MacroBusiness:

We know that Chinese steel mills have been destocking raw materials, which is one significant reason why the price has been falling. Courtesy of Credit Suisse, here was the state of inventories on May 9 (the latest update):

25 days of coverage is low by historical standards (and it’s probably lower now) but there are reasons the believe it’s not so low in longer term context. The downtrend in inventory stocking is clear over time. It’s simply no longer necessary for steel mills to tie up capital in the storage of excess iron ore given the oversupply situation.  As well, without the prospect of large stimulus packages, mills can be confident that demand will not suddenly spike....MORE