Market Commentary
Iron ore futures rebounded above $100 due to low rebar inventories. Rebar stocks across commercial warehouses in China have been on a decline for the last two months while production also fell in the last two weeks. According to Steelbank, construction steels inventories were down 4.05% from a week ago to 7.26 million tonnes. More broadly, market sentiment has been lifted somewhat after Beijing moved to contain fears of a spiraling debt crisis at China Evergrande Group which threatened to ravage demand from the property sector. The People’s Bank of China boosted its daily liquidity injection to 120 billion yuan just as China’s biggest property developer’s debt crisis could spiral out of control, intensifying a s lowdown in the commodities-intensive construction sector.
Future in Singapore surged to around $108 in London morning. Jan traded at 102.35 and 102.4 early in the session before soaring to around $104 while Nov also traded 104.25 before it edged up $2. Spreads were also much wider. C22/23 was heard trading 8.00 early in the morning before it exploded to around 8.60. Q4/Q1 traded as high as 2.85.
Physical Trades
Platform
Corex traded 170,000 mt BRBF Fe 62% at $110.65/mt for Oct 14-23 loading.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/09/Iron-Ore-Report-22092021-Eng-Chn.pdf
For more information please contact
FIS Iron Ore Desk
ferrous@freightinvestor.com
London Number +44 (0) 207 090 1120
Singapore: +65 6535 5189
Shanghai: +86 21 6335 4002