Futures fall but iron ore supply chain ‘super-stretched’

Iron ore futures fell below $100 on Monday amid a seasonal slowdown in Chinese activities.   According to latest data from Steelhome, Chinese iron ore port stockpiles gained for the first time since April to 108.4 million tonnes (up +0.56% w/w), as Australia and Brazil ramped up its iron ore production. Cargoes shipped via Australia’s …

US rig count falls as Asia refiners stall

Both WTI and Brent crude contracts rose about 9% last week and Brent crude futures have flipped into backwardation, so that oil for immediate delivery costs more than that to be provided later, usually an indication of tightening supply.   In Canada and the United States, the number of operating oil and natural gas rigs …

Capesize hits a new norm at $25,000 level

Capesize rates had a meteoric rise for the week, jumping from $13,000 base level to over $25,000 level by the end of week on good shipping demand. The Capesize 5 time charter average made a gain of $231 day-on-day to $25,511 on Friday, spotting one of the smallest gains of the week as compared to …

Iron Ore – and so it begins

Big questions have been asked in recent weeks about the iron ore rally, with many financial institutions forecasting that we will see a weakening of prices in the second half of 2020. Brazil continues to have serious control issues with COVID-19 and seemingly no plan to lockdown the country on a grand scale. Vale won …

DCE corrects amid market uncertainty

Chinese futures slid at the start of the week as trade participants seek for clearer market directions. The most-actively traded iron ore futures on the Dalian Commodity Exchange (DCE), for September delivery, went down by 2.21% to RMB 753.50 per tonne on Monday. Likewise, the steel rebar contract on the Shanghai Futures Exchange also slipped …

FIS Steel & Scrap Update – 22nd June

Turkish import prices retreat $8 since Wednesday Jul and Aug scrap futures trade $257/t and $260/t respectively Turkish import prices have softened $8 since last Wednesday amid a slow up in physical buying activity. The scrap futures curve continues to hold its relatively flat nature, July futures traded at $257/t, whilst August printed at $260/t …