Iron ore trading in world markets is strongly influenced by the behavior of Chinese steel activists. For this reason, one of the most important indicators influencing the iron ore and scrap market is the developments in China, whether it is a holiday or a decision of scrapers and scrap owners in this country. China’s golden holiday begins on October 1 for eight days, and pre-holiday news and occasional reports of major telephone deals in the country set the course for iron ore market developments.
*** Outlook for iron ore trading ahead of China’s golden holiday
Iron ore prices continued to decline in the last days of September due to declining market demand, which affected the price of export rebars such as 20 mm rebar, reducing it to 3,754 yuan ($ 551.25). According to Mysteel, this figure was $ 4 less than the same price on Friday last week. The Australian Ministry of Industry, Science, Energy and Resources forecasts a steady decline in the iron ore market by the end of this year, which could be transparent in the process of exporting raw materials from mineral-exporting countries such as iron ore. And estimate their income by the end of the year.
*** Riotinto enters the iron ore production chain
China is the world’s largest consumer of iron ore, and Rio Tinto recently finalized and signed an agreement to jointly mix iron ore in an enclosed area inside Dalian Port to meet the needs of all its customers. And effectively take over a large part of China’s iron ore supply chain.
Another advantage of this agreement for this large British company is that by entering Dalian port, it can access all the benefits of the regional hub of this port, and in addition to data mining of the port’s export data, with accurate complication of export and transportation bottlenecks. Eliminate iron ore transfers and speed up global iron ore trade in China. It should be noted that the prosperity of the economy is closely related to the development and agility of a country’s ports. Rioninto’s arrival in this Chinese economic vein promises good news for Rio Tinto and its major shareholders.
*** Evaluate iron ore prices during China’s golden holidays
One of China’s most important iron ore supply stations is Western Australia. A review of Chinese port news shows that iron ore imports fell to their lowest level in August, due to maintenance operations in Australian ports between July and August, which challenged the trend of iron ore exports to China. With the decrease in supply, we should expect prices to grow, and this issue was observed in supply prices in the first days of October. So much so that in telephone and informal transactions during the holidays we saw an increase in prices of $ 5 per ton of iron ore.
Fortescue (FMG) has reduced its discounts on Fine products due to market developments and a bullish outlook for iron ore prices due to growing demand. For example, discounts on iron ore delivery contracts in October fell from 9 percent to 5 percent.
*** On other Chinese iron ore deals
Despite declining rebates and rising demand for Chinese iron ore, the second wave of the Corona virus outbreak will slow demand for the international steel market, and China will have to cut costs to stabilize the market and reduce port storage costs. Therefore, Artan Press analysts predict a cross-sectional decline in iron ore prices on the Chinese stock exchange, and this issue should be taken into account in the calculations of mining decision makers that the risk of lower iron ore export prices is likely and crude sales by the end of this year for The profitability of mines and industries is not a viable option.
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