Market Commentary
Iron ore futures extended its losses on Wednesday following increased shipments from major suppliers, while traders are also sweating over potential government controls. Iron ore shipments from Australia and Brazil stood at 26.14 million tonnes last week, up 4.4% from a week ago, data from Mysteel showed. The increased shipments have eased market concerns over tight supply, coinciding with the seasonal weakness arising from rainy weather in southern part of China which slows down construction activities in the region, have heaped pressure on the raw material prices. Meanwhile, iron ore arrivals across 45 major ports in China stood at 22.12 million tonnes for the week, up 1.61 million tonnes from a week ago, according to the latest Mysteel data.
In addition, some traders are fretted over further government controls after state-owned enterprises were ordered to control risks and limit their exposure to overseas commodities markets by the State-owned Assets Supervision and Administration Commission (SASAC), according to a report by Bloomberg citing people with knowledge of the matter. It remains unclear what could have triggered SASAC’s latest order on overseas positions, but the agency has not ruled out further measures. In another development, the National Food and Strategic Reserves Administration will soon release state stockpiles of metals including copper, aluminum and zinc.
Futures in Singapore fell below $206 on Wednesday. In London, Jul did briefly fell to trade as low as 204.0 but was seen trading between 205.0 and 206.0 for most of the morning. Jul/Aug traded down from 6.95 to 6.9 while Aug/Oct and Aug/Dec traded at 12.15 and 23.50, respectively.
Physical Trades
Platform
Corex traded 90,000mt Fe60.8% MACF at $201.70/mt for Jul 6- 15 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/06/Iron-Ore-Report-16062021-Eng-Chn.pdf
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FIS Iron Ore Desk
ferrous@freightinvestor.com
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