Iron Ore Market Update
Market Commentary
Iron ore rebounded to near $150 as market sentiment has improved ahead of the peak seasonality. Rebar production in China rose by 1.1% during the 12-18 August period to 3.25 million metric tonnes, data by Mysteel showed. The increase in rebar production was due to preparation for the peak construction season in September and October period. Separately, China’s central bank vowed to stabilize the supply of credit and boost the amount of money supporting smaller businesses and the real economy after both credit and economic growth slowed in July. In China, “people are hoping for some further stimulus targeting the infrastructure sector, as real estate and manufacturing are looking bleak,” said Erik Hedborg, principal analyst at CRU Group. “In the rest of the world, we are seeing steel production stabilizing at levels below pre-pandemic levels.” Steel mills in China are thought to prefer discounted iron ore fines for cost saving reasons. Some market participants are expecting further downsides to high grade fines as mills cut down the blast furnace utilization.
Futures in Singapore surged to near $149 in London morning. Oct was seen trading around 140.0 to 141.00 in early London morning before trading up to 142.3. Sep also traded up to 145.0. the momentum carried on as Sep and Oct strolled up to 148.0 and 146.0, respectively. There was also some aggressive Q1 buyers in the market, trading up from 133.6 to 134.25 in quick succession. Spreads were also much wider, with Cal22/23 around 22.15 and Q4/Q1 around 7.80. Sep/Oct traded as high as 2.75 early morning before trading down to 2.60.
Physical Trades
Platform
GO traded PBF 170,000 mt at Platts Oct 62% index + $2.20/mt for Sep 25- Oct 4 loading.
Corex traded PBF 170,000 mt at Platts Oct 62% index + $2.25/mt for Sep 26- Oct 5 loading.
Click below link to open today’s Singapore Iron Ore Report
Singapore Iron Ore Report 24.08.21
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