Market Commentary
Iron ore found some support and rebounded on Friday on recovered China imported iron ore prices and sales after days of softening. At the moment higher grade iron ore productions demand has recovered modestly with comparably healthy steel margins. From market source, some physical traders purchased Brazilian ore to bet on its higher speculative value. Also Anglo-American reported its Q3 production of 16.89 million tonnes iron ore in south Africa and Brazil, up 8% from Q2, up 15% y-o-y, the increase mainly driven by a 22% uplift from Minas-Rio in Brazil said in the report. Other than that, steel demand outlook remains as the main theme of iron ore market. According to Beijing CUSTEEL E-Commerce Co ,Tangshan’s converter steel utilization rate fell from 76.4% last week to 75.5%, indicating a slight decline in end-user demand growth. MySteel reported the latest 45 ports iron ore inventories at 140.45 million tonnes, up 1.47 million tonnes w-o-w. Daily evacuation 2.76 million tonnes, up 89,100 tonnes w-o-w. While iron ore shipment was increased this week with Australia iron ore 67.99 million tonnes, up 879,000 tonnes w-o-w. Brazil iron ore 46.50 million tonnes, up 208,000 tonnes w-o-w. Moreover, investors also concern over steel production dip on energy crunch, the record coal and gas costs has forced metal output cuts from China to Europe. Historically the biggest shortages are in January thus the worst power crunch is yet to come and ramp up coal supply would require time.
Iron ore futures rebounded to $118 in London morning. Nov was seen trading from 117.25 to 118.45, Dec was also edged up from 115.3 to 116.50.
Physical Trades
Platform
Corex traded 80,000 mt Newman fines Fe 62.3% at $119.50/mt for Nov 26 – Dec 5 loading.
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