Market Commentary
Iron ore remained below $130 on expectations of increased supplies as well as worsening demand outlook as China’s emission targets are likely to drive further output curbs for the rest of the year. Iron ore futures did rebound to around $131 in Asia morning as inventory data points to better steel consumption. Mills’ steel stocks, which consists of five main steel products including rebar, wire rod, hot-rolled coil, cold-rolled coil and medium plates, were down 4.1% for the week to 5.95 million metric tonnes, fresh data by Mysteel showed. In addition, China’s retail steel stocks went down by 1.8% this week to 22.6 million metric tonnes. However, the rebound did not last as iron ore once again slipped back below $130 as market participants expect more supplied in October, with the major miners expected to churn out as much volumes as they can for the rest of the year in order to meet their respective annual guidance. Furthermore, the steel curbs are expected to remain for the foreseeable future as China battles to clean up its sky. According to Henning Gloystein, director for energy, climate and resources at Eurasia Group, said that air pollution is a major concern for President Xi in the run-up to the 2022 Winter Olympics early next year and he expected “Xi will maintain heavy political pressure to achieve China’s emissions goals”.
Futures in Singapore was seen hovering between 128.5 and 130.0 for much of the morning. Sep traded down from 133.0 to 132.0. Sep/Oct also traded 3.0. 22/23 was marked at around 20.00.
Physical Trades
Platform
Beijing Iron Ore Trading Center (Corex), 170,000 tonnes of 65% Fe Iron Ore Carajas fines, traded at Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines, cfr Qingdao, plus a premium of $3.25 per tonne, bill of lading dated September 7.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/09/Iron-Ore-Report-10092021-Eng-Chn.pdf
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