Iron Ore Market Update
Market Commentary
Iron ore remained supported following an uptick in restocking. According to trade sources, restocking activities have picked up ahead of the peak steel season in September and October. Meanwhile, China’s push to reach its economic targets also added to the gains. According to a front-page article published by the People’s Daily, President Xi said that china will strive to achieve key economic and social development objectives this year while maintaining strict virus controls. Prices could continue to rebound in the short term as port arrivals have decreased this week, according to Donghai Futures Co. analyst Liu Huifeng. Good profit margins and low iron ore inventories at steel mills are propping up consumption, she said. Still, rising supplies for the rest of this year, and a high likelihood for steel production cuts in the fourth quarter could weigh on iron ore demand, said Liu. Meanwhile, rebar stockpiles fell for a third consecutive week, indicating a pickup in consumption. According to the latest Mysteel data, total rebar inventories fell by 1.08% from a week ago to 11.21 million tonnes.
MySteel Rebar Inventory:
Rebar production 3.27 million tonnes, up 0.83% w-o-w.
Mills inventory 3.33 million tonnes, down 2.16% w-o-w.
Circulation inventory 7.89 million tonnes, down 0.62% w-o-w.
Futures in Singapore traded up to as high as 154.5 in London morning. Sep was seen trading up from 153.25 to 154.5 before easing off to 152.0 in early morning London. Q4 also traded between 148.0 and 149.0. spreads were also a lot wider, with 22/23 around 24.1 while Q4/Q1 traded up to 9.2 and then 9.3.
Physical Trades
Platform
Corex traded 170,000 mt BRBF Fe 62% at $153.80/mt for Sep 20-29 loading.
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FIS Iron Ore Desk
ferrous@freightinvestor.com
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