Iron ore futures rallied to near $120 following a pickup in restocking activities ahead of the week-long Chinese National Day holiday. “Sentiment was supported by a sudden spike in steel mill profit margins, raising prospects of demand to increase from mills,” Australia & New Zealand Banking Group Ltd. wrote in a note. “Mills are also restocking ahead of National Day holiday. That said, uncertainty is still looming after the Chinese authorities asked local governments to prepare for the potential downfall of Evergrande.” Meanwhile, steel production remained low due to the ongoing steel production curbs as well as the energy-saving policies in China. Blast furnace capacity utilization rate has dropped for the third consecutive week to 82.06% during the 17-23 September period, the lowest level since 2 July.
Futures in Singapore briefly surged above $120 during London morning. Oct was seen trading up from 118.0 to near-121 before retreating to trade as low as 119.0. Similarly, Nov traded up from 119.0 to 119.75 before trading down to as low as 117.4. Spreads were wider with 22/23 around 9.65. Oct/Nov traded at 1.3.
Physical Trades
Platform
GO traded 70,000 mt PB lump at MB 62% Nov index +0.114/mt for Oct 30- Nov 8 loading.
GO traded 100,000 mt PB lump at Platts 62% Nov index +0.119/dmtu for Oct 30- Nov 8 loading.
Corex traded 90,000 Fe 60.5% Jimblebar fines at AM 62% Nov index -$16.30/mt for Oct 26 – Nov 4 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/09/Iron-Ore-Report-27092021-Eng-Chn.pdf
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FIS Iron Ore Desk
ferrous@freightinvestor.com
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