Iron Ore Market Update
Market Commentary
Iron ore futures retreated on Wednesday amid declining steel prices as authorities in China stepped up efforts to tame the markets. Mysteel reported that China’s steelmaking hub of Tangshan has announced fresh production curbs which include the suspension of production of all sintering units of steel mills between midnight to 10 am during 18-20 May. It is the latest in a series of measures targeting the steelmaking city after Chinese Premier Li Keqiang urged authorities to tackle surging commodities prices. Domestic hot-rolled coil (HRC) prices fell from last week’s record high level of around 6,700 RMB to 6,400 while Tangshan billet prices were kept below 5,500 RMB/mt. Meanwhile, BHP’s South Flank iron ore project in Western Australia will announce its first production in the next couple of days. The mine is expected to eventually add 80 million tonnes of annual supply which is seen as a “perfectly timed” moment, according to its CEO, Mike Henry.
Futures in Singapore fell below $210 in London morning. Jun was seen trading up from 204.5 to as high as 207.4 before leaking once again to trade as low as 206.25. Spreads narrowed a bit overnight but had since widened a touch once again. Q3/Q1 was as low as around 25.7 early London but since widened back out to 26.75 with Q3/Q4 at 14.6. C22/23 was around 28.95. Jun/Jul traded up from 5.35 to 5.45.
Physical Trades
Platform
GO traded 100,000 mt Newman Fines at $215.50/mt, for Jun 6-15 loading.
Corex traded 90,000 mt Newman lump at Platts [2021-06-01,2021-06-30] 62%, (+0.52)/dmtu for Jun 13-22 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/05/Iron-Ore-Report-19052021-Eng-Chn.pdf
For more information please contact
FIS Iron Ore Desk
ferrous@freightinvestor.com
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