Iron Ore Market Update
Market Commentary
Iron ore futures rebounded above $200 a tonne on Monday over better steel output. Mills in China continued to churn out steel at record pace despite government attempts to rein in output from last year’s record of over 1 billion tonnes. According to the latest figures released by China’s statistics bureau, crude steel production in April rose 13.4% year-on-year to 97.85 million tonnes. Crude steel output for the Jan-Apr period rose 15.8% year-on-year to 374.56 million tonnes, data from the National Bureau of Statistics showed. In addition, China’s fixed asset investment in the property market has increased by 19.9% year-on year to 14.4 trillion RMB during the same Jan-Apr period. All these came as iron ore stockpiles across Chinese ports declined for the third consecutive week, indicating strength in demand.
Futures in Singapore rebounded above $207 during London morning. Iron ore was under pressure in early trading, with Jun trading down from 205.5 to 203.9 before rebounding to as high as 207.25. Q4 also rebounded from 178.5 to as high as 181.0 and Cal 22 traded at 152.0 with spreads widening. Then iron ore were softer once again, with Jun and Q4 trading at 205.6 and 180.0, respectively. Iron ore then caught a bid after some strong physical print, with Jun approaching 208.0 while Jul traded at 202.35.
Physical Trades
Platform
Corex traded 170,000 mt BRBF Fe 62% at $220.80/mt, for Jun 14-23 loading.
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