Iron Ore Market Update
Market Commentary
Iron ore futures crumbled on Friday as China stepped up efforts to rein in emissions. Prices of ferrous metals all fell sharply after it was reported that the Chinese government has ordered nine groups – consisting of officials from different cabinet ministries plus an industry body to visit all the country’s producing provinces to check whether outdated plans have been eliminated as agreed. The objectives of the inspection also include checking whether companies adhere to the strict environmental and energy-consumption standards as well as the progress government agencies made on reducing crude steel production, said Bloomberg, citing people asked not to be identified as they are not authorized to speak publicly. Around the same time, a local media, Ifeng.com, reported that members of the China National Development and Reform Commission and the Price Supervision and Competition Bureau discussed ways to ensure the supply and price stability of coal and other commodities following a visit at a coal trading centre. In other news, iron ore inventories across 45 major ports in China stood at 120.89 million tonnes, down 2.78 million tonnes from a week earlier. Meanwhile, rebar inventories were up by 3.48% last week to 10.84 million tonnes.
Futures in Singapore held firm above $208 during the early London trading. Following the news, iron ore futures declined sharply, with Jul trading down as low as 205.6 before rebounding to trade 206.45 and then 207.1. Surprisingly, however, spreads held firm despite the slump. In fact, Cal22/23 was widened out to near 40.00 after Q1/Cal22 traded astonishingly at 22.0 in Asia. Q1/Q3 also traded as high as 29.75 and was bid on at the time. Jul/Q4 traded 25.75 during early London trading. MB65 Jul also traded at 238.8.
Physical Trades
Platform
GO traded 170,000 mt PBf at Platts July index 62% + $12/mt for Jul 11-20 loading.
GO traded 90,000 mt Newman lump at Platts July Index 62% + 0.7300/dmtu for Jul 11-20 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/06/Iron-Ore-Report-18062021-Eng-Chn.pdf
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FIS Iron Ore Desk
ferrous@freightinvestor.com
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