Iron Ore Market Update
Market Commentary
Iron ore futures rallied to $116 in London morning as investors continued to assess rising port stockpiles against the strength of China’s steel market as the country continues its recovery from the coronavirus pandemic. Iron ore futures were initially lower in Asia as the latest MySteel data showed that iron ore inventories across 45 ports added another 3.48 million tonnes last week to 127.63 million tonnes. The decline was however largely floored by the strength of China’s steel market. According to the MySteel data, China’s steel inventories declined for the third consecutive week during the 23-29 Oct period due to steady domestic demand. Meanwhile, in anticipation of stricter environmental curbs in November by the Ministry of Ecology and Environment, some traders were thought to have stocked up before the curbs kicked in.
Futures in Singapore recovered from the early blues in Asia to rally above 116.0. Nov was seen trading from 115.0 to 116.3. Meanwhile, Q1 was also seen trading from 106.6 to 107.6. Nov/Dec traded at 3.1 and Nov/Q1 traded at 8.4. Q1/Q2 and Cal21/22 both widened out to 6.85 and 13.5.
Physical Trades
Platform
Rio Tinto, Globalore, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the December average of a 62% Fe index plus a premium of $3.95 per tonne, laycan November 26-December 5.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2020/10/Iron-Ore-Report-30102020-Eng-Chn.pdf
For more information please contact
FIS Iron Ore Desk
ferrous@freightinvestor.com
London Number +44 (0) 207 090 1120
Singapore: +65 6535 5189
Shanghai: +86 21 6335 4002