Iron Ore Market Update
Market Commentary
Iron ore futures slid below $160 on Tuesday on ongoing concerns over steel demand despite an uptick in restocking activities. While Beijing’s efforts to rein in its dirtiest steel sector, China’s total production over the first seven months of the year remained 8% higher than last year’s level, suggesting that steeper cuts may be on the horizon in order to reduce output to below 2020’s levels.Trade participants believe that the recent uptick in restocking activities will be short-lived, with many feared that the output cuts will be extended across China. According to trade sources, the steel production cuts are extended to the province of Jiangsu, which so far has seen the least of output cuts compared to other regions.
Futures in Singapore fell to $158 in London. Sep was seen trading between 159.0 and 159.7 in the early London morning before getting sold down to as low as 158.0. Spreads were crushed once again, with Cal22/23 around 28.45. Sep/Q4 legged in at 6.0.
Physical Trades
Platform
Corex traded 80,000 mt Mac fines Fe 60.8% at $144.50/mt for Sep 26- Oct 5 loading.
Click below link to open today’s Singapore Iron Ore Report
Iron Ore Report 17082021 Eng & Chn
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