Iron Ore Market Update
Market Commentary
Iron ore futures fell on Monday after China’s steel production plunged to a 15-month low in July as China’s efforts to cut emission are starting to take effect. According to official data, steel output fell by 8.4% on year to 86.8 million tonnes. However, over the first seven months, China’s total production stood at 649 million tonnes, still 8% more than last year, suggesting that further cuts are needed to reduce output to below last year’s levels. Furthermore, steel demand is expected to decline further in August due to bad weather which slowed construction activities.
Iron ore futures slumped to $158 in Asia but had since rebounded as restocking activities among Chinese mills picked up. Some market participants are hopeful that restocking activities ahead of the typical peak construction season in September and October. Iron ore futures was seen trading above $160 during London morning. Oct was seen trading up from 157.9 to 158.5 before easing off to trade 157.6 as Dec traded down from 151.5 to 150.8. Sep was seen trading as high as 161.5. Spreads were once again narrower, with Sep/Oct traded down from 3.15 to 3.1 while Oct/Q4 and Nov/Dec legged at 3.25 and 3.35, respectively.
Physical Trades
Platform
GO traded 80,000 mt Jimblebar fines at AM Oct 62% index -$13/mt for Oct delivery.
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https://fisapp.com/wp-content/uploads/2021/08/Iron-Ore-Report-16082021-Eng-Chn.pdf
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