Market Commentary
Iron ore futures slumped to near-$110 as China’s power crisis intensifies, dampening the consumption outlook for the raw material. China’s industrial sector is facing a power crunch that limits operations of steel works. According to Mysteel, over 80 steel mills in September suspended production for maintenance as some northern provinces have imposed power curbs at steel mills. Some trade sources speculated that the Chinese authority is looking to restrict coal supply for heating purposes during the upcoming winter season.
Futures in Singapore recovered a bit in London on Tuesday having slumped below $112 in Asia. Oct was seen trading up from 111.5 to 112.9. Oct/Q4 traded 1.05 while Oct/Q1 and Nov/Q1 traded 4.5 and 2.9 respectively.
Physical Trades
Platform
Rio Tinto, Globalore, 70,000 tonnnes of 62.5% Fe Pilbara Blend lump, traded at the November average of a 62% Fe index plus a lump premium of $0.1550 per dry metric tonne unit, laycan October 30-November 8.
BHP, Globalore, 90,000 tonnnes of 62% Fe Newman fines, traded at $111.50 per tonne cfr China, November arrival.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/09/Iron-Ore-Report-28092021-Eng-Chn.pdf
For more information please contact
FIS Iron Ore Desk
ferrous@freightinvestor.com
London Number +44 (0) 207 090 1120
Singapore: +65 6535 5189
Shanghai: +86 21 6335 4002