Iron Ore Market Update
Market Commentary
Iron ore futures remained subdued on Tuesday as the steel outlook continues to be clouded by concerns over further production curbs. China’s efforts to clean up its dirtiest steel industry are finally taking effect, with consumption taking a hit. Apparent consumption across five typical steel products fell to 9.86 million tonnes, the lowest since March, data by Mysteel showed. Meanwhile, construction steel apparent consumption fell from a five-year high in March to a five-year low in August while construction steel daily trading volume also fell to a five-year low to 165,000 tonnes. Meanwhile, Tangshan will extend existing steel production curbs to 13 March next year to ensure good air quality for the Winter Olympics, Mysteel reported, citing a draft document issued by the city’s environment office. According to estimates, air pollution in Tangshan should fall by at least 40% year-on-year in the days leading up to and during the Games, which start on 4 February. When Beijing hosted the Summer Olympics in 2008, authorities shut a swathe of factories in the industrial regions near the capital.
Futures in Singapore was seen trading between 159 and 160.5 for most of the morning. Front-month spreads were a touch wider, with Sep/Nov and Sep/Q4 both traded at 6.9 while Sep/Jan traded at 14.2. Sep/Cal22 also traded at 33.0. Back-end spreads remained compressed, with quite a few Cal buyers all looking for offers.
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https://fisapp.com/wp-content/uploads/2021/08/Iron-Ore-Report-10082021-Eng-Chn.pdf
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