Iron Ore Market Update
Market Commentary
China’s steel outlook looks bleak as China’s steel industry vowed to enforce efforts to cut output this year. According to Shanghai Securities News, the government will work closely with the industry to develop plans for staggered steel production cuts over winter. Major producers such as Jiangsu and Shandong have already made arrangements to reduce output in the second half, Ministry of Ecology and Environment deputy director Wu Xiangfeng said. Sharp steel output reductions are also expected in the steelmaking hub of Tangshan. Daily crude steel and pig iron production are down 2.97% and 2.66% month-on-month respectively to 2.04 and 1.83 million tonnes so far in August, a survey by China’s Iron and Steel Association showed. There had been, however, some increase in the intake of iron ore sintering fines across Chinese steel mills recently despite the ongoing steel output cuts. According to Mysteel, the daily consumption of imported iron ore sintering fines rose by 1.2% or 6,400 mt per day fortnightly to 543,000 mt per day, due to higher operational rates of blast furnaces among the surveyed 64 Chinese mills. Meanwhile iron ore port inventories fell by 110,000 this week to 126.28 million tonnes.
MySteel 45 ports iron ore inventories at 126.28 million tonnes, down 110,000 tonnes w-o-w.
Daily evacuation 2.99 million tonnes, up 148,000 tonnes w-o-w.
Australia iron ore 64.12 million tonnes, up 191,000 tonnes w-o-w.
Brazil iron ore 34.91 million tonnes, up 338,400 tonnes w-o-w.
199 ships at ports, up 7.
Iron ore futures rebounded in London, having fallen to $156 in Asia. Sep was seen rebounding from around 157.6 to 159.5 while Q4 traded up from 151.0 to 152.25. Spreads were largely unchanged with 22/23 around 31.0. Sep/Nov and Sep/Dec traded at 7.0 and 10.5 respectively.
Physical Trades
Platform
Globalore, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the September average of a 62% Fe index plus a premium of $1.75 per tonne, laycan September 2-11.
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For more Iron Ore EOD 13.08.21information please contact
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