Iron Ore Market Update
Market Commentary
Iron ore futures retreated on Thursday over declining mills profitability in China. Steel margins in China took a beating following the nation’s high-profile crackdown on surging commodity prices. Rebar and hot-rolled coil futures have tumbled over 20% from the respective multi-year highs in May. The China Iron & Steel Association (CISA) warned this week that steel prices could face further setbacks as demand dwindles. Some trade participants are thought to be scaling back on their portside cargo procurements due to concerns over lower seasonal steel demand in the southern part of China. Despite the collapsing of steel margins, most steelmakers in China have kept their blending mix unchanged for the time being, focusing on medium and high-grade iron ore such as PBF and Carajas fines.
In other news, Mineral Resources has been forced to divert iron ore carriers amid strike action by waterside workers at the port of Femantle. Only a small volume of iron ore is believed to be impacted and the iron ore carriers have been re-directed to “ensure continued safe operations”, a Mineral Resources spokesman said.
Futures in Singapore sank below $204 in London. Jul was seen trading down from 205.0 to 203.4 before recovering to trade as high as 207.3. Jun/Aug traded at 17.25 while Jul/Aug traded at 7.9 and then several times at 7.85. Aug/Dec also traded 24.9 while Q3/Q4 traded at 19.3. Cal22/23 was marked at around 39.2.
Physical Trades
Platform
BHP, Beijing Iron Ore Trading Center (Corex), 90,000 tonnes of 60.8% Fe Mining Area C fines, traded at $197.50 per tonne cfr China, August arrival.
Rio Tinto, Globalore, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the August average of a 62% Fe index plus a premium of $11.25 per tonne, laycan July 27-August 5.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2021/06/Iron-Ore-Report-24062021-Eng-Chn.pdf
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