Market Commentary
Iron ore futures were under pressure on Monday as China’s green push casts doubt on China’s steel demand outlook. China’s efforts to curb steel-related emissions through output cuts this year have so far failed to clamp down on surging iron ore prices, but the Chinese authorities aren’t giving up yet, signalling that they plan in the near term to double down on measures launched in recent months to cool the commodities markets buoyed by optimism over a global economic recovery. Iron ore will likely tighten up in the second half of the year, with a surplus likely arrives in the fourth quarter, according to Citigroup Inc. Amid of uncertainties around steel demand and China policies, the American bank expects a downturn in iron ore prices in the third quarter to an average price of $200, and $160 in the fourth. Meanwhile, China’s steel industry has completed its road map toward carbon neutrality, which is awaiting feedback from participants, China Securities Journal reported the China Iron & Steel Association as saying.
Futures in Singapore slumped to as low as 211.5 during the Asian trading session. It had since recovered during the London morning, with Aug trading as high as 214.1 and Nov at 198.4. Market then eased off, trading 214.0 before sliding down to 213.0. Spreads were much wider this morning following some aggressive Q1 selling interest. Q3/Q4 and Q4/Q1 were marked at 15.8 and 14.65, respectively while Cal 22/23 was marked at 38.35. Aug/Sep traded at 5.5 in a couple of decent clips while Aug/Nov also legged in at 15.70.
Physical Trades
Platform
GO traded 90,000 mt Yandi fines at AM 62% Aug index -$18.35/mt for Aug 11-20 loading.
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