Iron Ore Market Update
Market Commentary
Iron ore recovered some of the lost ground on Tuesday as investors awaited the outcome of China’s Communist Party plenum. China’s Communist Party plenum will convene this week as party officials will meet and lay out the blueprint for economic and social development targets for 2021-25. Meanwhile, data from the General Administration of Customs showed that China imported 108.5 million mt of iron ore in September, an 8% increase from the month before. In particular, imports from non-Australian and Brazilian sources such as Ukraine, Russian and Sweden showed significant improvement; increased by 37%, 77% and 76% respectively, Custom data showed. Furthermore, according to data from MySteel, Australian and Brazilian delivery also picked up since port maintenance ended in early October, leading to almost a weekly surplus of 2 million tonnes at port against port evacuation. Such surplus is likely to extend further as daily pig iron production is expected to drop from 2.52 million tonnes to 2.45 million tonnes, according to MySteel’s estimates. At the same time, about 150 ships are thought to be queued up along Chinese ports awaiting loading.
Futures in Singapore were a touch firmer on Tuesday, with Nov trading between 113.5 and 113.7 for most of the morning. Spreads were also firmer, with Q1/Q2 and Cal 21/22 around 6.4 and 13.0 respectively. Nov/Dec traded 2.85 and then 2.9 while Dec/Q1 also traded at 5.0.
Physical Trades
Platform
GO traded 80,000 Mac fines Fe 62%, at $111.75/mt for December delivery.
GO traded 170,000 mt PBF at Platts December index 62% +$3.80/mt for Nov 27- Dec 6 loading.
Corex traded Carajas fines Fe 65%, 90,000 mt at $129.80/mt for bill of lading at Oct 23.
Vale, tender, 100,000 tonnes of 58.1% Fe Sinter Fines Guaiba, traded at the December average of Fastmarkets’ index for iron ore 62% Fe fines, cfr Qingdao, with a discount of $10 per tonne, bill of lading dated October 12.
Click below link to open today’s Singapore Iron Ore Report
https://fisapp.com/wp-content/uploads/2020/10/Iron-Ore-Report-27102020-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