Iron Ore Market Update
Market Commentary
Iron ore futures were largely unchanged on Wednesday as traders looked to policymakers in China for direction. Iron ore eased off to $196 in Asia as China reiterated its commitment to crack down on surging commodities prices. China’s Market Supervision Agency said that it will closely monitor the volatility seen in commodities prices, strengthen its risk analysis and implement effective supervision on the commodities markets. Meanwhile, the Ministry of Industry and Information Technology said it will join forces with relevant agencies to resolutely crack down on activities such as hoarding, “malicious” speculation and price manipulation. It will also work closely with enterprises along the supply chain to establish a sustainable long-term relationship to stabilize the supply of raw materials and manage risks associating with price fluctuations in the markets.
Early losses in Asia were largely reversed as traders are hopeful that authorities in Tangshan may ease some restrictions around iron smelting, as reported by Caixin on Monday, without citing the spokesman. It appears that authorities in China are considering relaxing restrictions on those mills that comply with the ultra-low emission regulations. In London, the benchmark Jul contract was seen trading in tight ranges between 196.7 and 199.0 all morning. Spreads, however, were a lot wider as Q4/Q2 traded as high as 26.7 in Asia. Cal 22/23 was marked around 30.05 while Jul/Nov traded at 22.25 and then 22.05.
Physical Trades
Platform
GO traded 90,000 mt MAC fines at $202.60/mt, for July loading.
Corex traded 170,000 mt Fe 62% PBF at Platts 62% Jul Index + $9.30/mt, for Jun 28- Jul 7 loading.
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