Iron Ore Market Update
Market Commentary
Iron ore and steel prices saw a major correction last week following the government crackdown. Mills’ profitability fell sharply since reaching multi-year highs just two weeks ago, according to data compiled by Bloomberg Intelligence. According to some trade sources, steel margins for some products have fallen below $200/mt. Meanwhile, apparent consumption for both construction steel and hot-rolled coil products have decreased over the past week. Sentiment around the steelmaking ingredient is improving. The crackdown on the steel market appears to have the desired effect of calming the market and fizzled out speculative money.
Futures in Singapore rebounded to $185 in early London but had since softened. Jun was seen trading down from 185.0 to 183.6 before leaking a touch to sub-183.0 briefly. Spreads were a touch wider, with Q3/Q4 around 14.9 and Cal 22/23 at 28.2. Jun/Jul traded at 6.0 while Jan/Feb traded at 3.9.
Physical Trades
Platform
Corex traded 170,000 mt Fe65% Carajas fine at $228.80/mt, for bill of lading at May 17.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/05/Iron-Ore-Report-25052021-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