Iron ore futures rallied sharply on the first trading day of the week on market optimism over steel demand as China’s recovery gathered momentum. An upturn in industrial output suggests that the economy expanded in last quarter after cratering in the opening three months due to the coronavirus impact, according to Bloomberg Economics. The robust …
Author archives: Lee Welch
OPEC+ ponders when and how far to cut
OPEC’s Joint Ministerial Monitoring Committee (JMMC) will meet on Tuesday and Wednesday to recommend the next level of cuts after compliance in the group hit 107% in June, up from 77% in May. Record high inventories in the US and a second wave contagion around the globe have added speculation that OPEC+ might yet …
Crash, Bang, Recovery
It was never going to be easy recovering from the largest economic shock the world has ever encountered. After record drop in consumer spending, GDP, travel and so many other indicators, it is hard to quite fathom the scale of the disruption, or the mountain left the climb to bring things back to normal. …
FIS Weekly Ferrous Report – profit takers loom as iron ore holds at high level
Ferrous Sector Money Flow: DCE iron ore saw significant money flow in the market and rebounded after a few weeks of consolidation. However during the Asian morning Tuesday iron ore stuck in an RMB 5-7 range again. DCE iron ore index created a gold cross on Monday near-oversold area. The high of the September contract …
Continue reading “FIS Weekly Ferrous Report – profit takers loom as iron ore holds at high level”
Short term crude direction waits on data
Newly reported coronavirus cases and mobility data, including an EIA report on gasoline consumption coming out later this week, will be watched by market participants in order to determine the short-term direction of crude prices in the next few days. On the supply side OPEC+ production is at its lowest since 1991 and is …
Paralos joins the FIS podcast this week
A heads-up that special guest Demetris Polemis, Portfolio Manager of the Paralos Fund joins the FIS podcast this week. Demetris and the FIS team will discuss the increasing financialization of the freight and iron ore markets, evidenced by the emergence of systematic funds, data-driven decision-making and non-traditional market participants. Available on Wednesday 8th July on …
Iron ore uneasy over China weather, steel demand
Iron ore futures rebounded modestly on Tuesday as investors remained concerned over China’s steel demand. Rebar led the way for the rebound in Asia as investors became concerned over the latest environmental curbs in Tangshan which may lead to temporarily closure of many blast furnaces and sintered machines in the area. Iron ore failed …
Continue reading “Iron ore uneasy over China weather, steel demand”
Oil market waits for data for pre-holiday direction
All eyes for signs of potential demand recovery are on data announcements due on Tuesday from the American Petroleum Institute, from the US government’s Energy Information Administration on Wednesday, and from the key 4 July holiday, when increased travel is expected. A Reuters poll showed analysts expect U.S. crude oil stockpiles fell from record …
Continue reading “Oil market waits for data for pre-holiday direction”
Did Someone Mention Increasing Demand?
It is the panacea for all markets, the biggest factor that could help us recover some sense of normality, the only thing that will bring a smile to suppliers across the world. It is, of course, increasing demand. The virus has caused huge disruption and left markets unable to react quickly enough to counteract …
Oil Through The Looking Glass
*Crude Back in Trouble* Oil prices have continued their movements downwards as the markets digests the news of another US stocks build reported yesterday afternoon, as well as a resurgent virus in the United States. New infections are at new daily records in Florida, Texas and California. According to the EIA U.S. crude inventories rose …