| Market Commentary
Iron ore futures steadied Tuesday as iron ore portside price ticked up with improved trading activities observed in both in seaborne and portside markets. Market sources also reported that China’s steel exports have increased due to weaker domestic demand, with steel mills keen to sell abroad for better margins, as well as filling the gap of recovering global demand. However, some investors remain cautious with declining steel demand over winter season. China Iron and Steel Association (CISA) cited in a survey that steel output during the first third of November was down 1.5% MoM and slumping 17.3% YoY, showing promising sign of the nation getting closer to its production curb target at the current production level.
Iron Ore futures edged higher in Singapore afternoon trading, though volatility was again low. Prices initially declined slightly, hitting market lows just before halfway through the session before a sharp reverse to session highs of $88.95. From there prices stabilised somewhat to close out at $88.70.
Physical Trades
Platform
GO traded 90,000 mt Newman fines at $89.80/mt for Dec 11-20 loading.
BHP, Globalore, 90,000 tonnes of 58% Fe Yandi fines, traded at the January average of two 62% Fe indices plus a discount of $20.35 per tonne, January arrival.
GO traded 90kt Yandi Fines at AM62% Index – $20.25, for Jan arrival. |
