Market Commentary
Iron ore futures reversed early losses in Asia as investors assessed the steel supply and demand outlook. The August contract fell to as low as $204.75 in Asia as market sentiment was dampened by recovering iron ore supply as well as rising scrap usage. Supply tightness from both Australia and Brazil will likely ease as port maintenances in these two top iron ore producers are expected to end in July, according to Mysteel. Furthermore, China’s National Development and Reform Committee (NDRC) announced on Wednesday that the country aimed to increase steel scrap usage by 23% to 320 million metric tonnes by 2025. However, strong demand outlook has paved the way for a reversal on steel and iron ore prices. Manufacturing industries are expected to generate strong demand for steel as industrial profits rebound and countries recover from the pandemic, according to China International Capital Corporation Hong Kong Securities Ltd. Prices for rebar climbed and hot-rolled coil in Shanghai jumped to the highest level in seven weeks.
Iron ore futures were on recovery mode in London. Aug was seen trading up from around 206.85 to 209.3 and then 209.50 before trading at day high of 210.0. It then eased off a touch to trade 209.5 again. 65% Jul also traded at 247.0. Jul/Aug traded at 8.1 while Aug/Sep traded at 7.0/ Sep/Oct and Sep/Nov also traded at 6.10 and 12.00 while 65/62 Aug traded at 31.15.
Physical Trades
Platform
BHP, Beijing Iron Ore Trading Center, 80,000 tonnes of 60.8% Fe Mining Area C fines, traded at $206.80 per tonne cfr China, August arrival.
Rio Tinto, Globalore, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the August average of a 62% Fe index plus a premium of $11.15 per tonne, laycan August 5-14.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/07/Iron-Ore-Report-07072021-Eng-Chn.pdf
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