Market Commentary
Iron ore futures rebounded on Friday from its three days fall as investors assessed the construction activities will improve in the coming weeks thus the optimistic market sentiment, despite government strengthened up to curb steel production and pollution. Meanwhile, over 20 Chinese steel mills have issued maintenance plans in September according to Beijing Steel Network news. As a resul, steel marking material and SHFE Rebar climbed up respectively 4.6% and 2.4% today. However, the Caixin/Markit services PMI in August fell to 46.7 (vs last 54.9) the lowest level in 16 month since pandemic time, from a Friday survey reported by Cainxin, highlighted China’s service sectors as well as business confidence has taken slower than expected pace from recovery. “(Domestic) total supply and demand, overseas demand and employment all shrank, indicating the immense pressure on the services sector stemming from the reappearance of Covid-19.” Dr. Wang Zhe, Senior Economist at Caixin Said.
On the supply side, IHS reported Australia shipped 78.7 million mt iron ore in August month, up 6.5% from July; Brazil exported 35.0 million mt iron ore, up 14% vs July. According to Mysteel data, China 45 major ports iron ore stockpiles up 1.4% to 131.0 million tonnes for the week ends 3 Sept.
Physical Trades
Platform
Corex traded 170,000 mt BRBF at $145.30/mt for Oct 4-13 loading.
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