Market Commentary
With soaring energy costs threatening more supply disruptions, while power constraints and economic slowdowns putting demand at risk, investors weighed China’s economic prospects and iron ore futures fluctuated. Banks have downgraded its price forecast for iron ore in 2022.
According to the National Bureau of Statistics, the output of crude steel in September fell 21.2% year-on-year to 73.75 million tons, and the output of steel products in September fell 14.8% year-on-year to 1019.5 million tons. In the third quarter, GDP grew by 4.9% year-on-year, which was lower than the expected 5%. The weak real estate industry and the energy crisis dragged down the growth. However, a spokesperson for the National Bureau of Statistics said that the real estate market is stabilizing, and the impact of the power crunch on the economy will be limited.
Iron ore futures in Singapore recovered a bit in London on Monday before running into some resistance. Dec traded from 120.75 to 121.35 before slipped to 119.25. Oct/Nov traded 1.50, Nov/Dec traded 2.55.
Physical Trades
Platform
GO traded 70,000 mt PB lump at Platts Nov 62% index + $0.2100 dmtu for Nov 5-14 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/10/Iron-Ore-Report-18102021-Eng-Chn.pdf
For more information please contact
FIS Iron Ore Desk
ferrous@freightinvestor.com
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