Iron ore futures opened high at the opening, but only to slump into a downward trajectory on bearish market outlook.
The futures of Dalian Commodity Exchange (DCE) for January delivery then fell by 3.49% day-on-day or down RMB 25.50 to RMB 706/mt, during the day trading session on Monday.
The rebar future moved flatly and dipped slightly by 0.58% day-on-day or up RMB 33 to RMB 5,642/mt, during the day trading session.
More upticks for long steel prices
Despite the poor market outlook, there might be further price upticks for long steels, due to low rebar inventories among commercial warehouses for the sixth consecutive weeks according to Mysteel.
The low stocks caused domestic rebar prices to five month-high level of RMB 5,525/mt as of Sep 10, and the uptick might continue further.
As China’s largest private mill, Shagang Group planned to raise long steel prices by RMB 200-350/mt and other mills might follow with increment too.
Australian iron ore shipments reach record low
Some trade sources expected further upside for iron ore prices amid the low steel demand environment, as iron ore inflows had slowed for the second consecutive month in August.
According to Pilbara Ports Authority (PPA), Australia’s Port Hedland exported a total of 35.9 million mt in August, down 7% on-month and at a 6-month low.
The low shipments might push up iron ore prices for arrivals to Chinese ports, as there had a noted increases of iron ore shipment to non-China markets, like South Korea and Japan with fresh enquiries.