Iron Ore Market Update
Market Commentary
Iron ore futures were largely flat on Wednesday as investors assessed potential economic policies to boost growth against a push to clean up its steel sector. Prices of the steelmaking raw material have plummeted over $50 in less than three weeks as China’s efforts to curb steel production and pollution are finally taking effect, coinciding with the construction sector’s seasonal lull in May and June. Meanwhile, production curbs in the steelmaking hub of Tangshan were meant to end at the end of the year but have now been extended until March to ensure good air quality for the Winter Olympics. China’s aggressive measures to rein in its steel sector have raised concerns that they could hamper China’s economic recovery, particularly at a time when the Chinese economic growth is showing signs of slowing down.
Iron ore prices received some support on Wednesday after the People’s Bank of China fuelled expectations of further monetary policy easing after highlighting potential risks to the economic growth outlook in its latest quarterly report. Futures in Singapore surged to $165 in Asia before coming back down to around $160. In London, Sep was seen trading between 163.0 and 164.0 for much of the morning. Sep/Q4 traded 7.45 while Cal22/23 traded at 32.0.
Physical Trades
Platform
GO traded 80,000 mt Newman Fines at $165.50/mt, for Sep 6-15 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/08/Iron-Ore-Report-11082021-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