In this report, we will evaluate the prices of iron ore in the world market, quoted by Metal Bulletin. Market monitoring shows the growth of iron ore prices. Negative news weighs heavily on the market, but the iron ore sector continues to grow steadily. In the following, we will examine the details of international iron ore supplies. This data is the latest data received from Metal Bulletin on July 6th. Be with Artan Press.
*** Evaluation of iron ore trades quoted by Metal Bulletin
Iron ore prices rose sharply on Tuesday, July 6, following a rise in steel prices, according to Artan Press. While the market talk about reducing crude steel production and the focus of officials on preventing rising commodity prices in the market was heavy. Iron Ore once again showed its bargaining power in international markets. Despite the imposition of tax fines in China, we see that in the current market, the payment of these fines is economically justified for buyers and investors.
*** Assess the amount of Chinese iron ore tax fines
In the following, we will mention some of the most important figures of tax fines, which are described below. 62% iron ore fine, cfr Qingdao: $ 222.36 per ton, $ 0.54 per ton increase over the previous week. 62% fine for alumina, cfr Qingdao: $ 226.02 per tonne, $ 2.88 per tonne increase over the previous week. 58% high premium iron fine, Qingdao CFR: $ 185.76 per tonne, $ 1.48 per tonne compared to last week. Fine of 65% iron from Brazilian origin, cfr Qingdao: $ 254.90 per tonne, $ 0.60 per tonne reduction compared to the same as last week. The tendency of Chinese steelmakers to buy from ports has led to a drop in the price of cargo on the water in recent months. It is about $ 4 / ton.
*** Iron ore growth in China Futures Exchange
Recharge of steel chain products in China Futures Exchange. With the resumption of steel production in China, demand for raw materials has peaked and iron ore prices have risen. Steelmakers who are producing in the cost-to-cost range have no choice but to raise prices. Therefore, buyers have resumed their emotional buying in the futures market by looking at these developments. Today the price of rebar increased by 151 yuan, hot rolled by 176 yuan and iron ore by 34 yuan. China’s iron ore futures market is currently flat on the price target.
The market has not been significantly affected by the recent drop in prices in the Black Sea export market. The market has received many physical shocks due to news of declining steel production to Chinese futures at DCE and last month’s exchange at SGX in both primary and secondary markets.
*** The most important key roles in global iron ore transactions
Iron ore futures traded lower in September on the Dalian Commodity Exchange (DCE) yesterday morning, but in the afternoon before closing on Monday, they closed at 0.52 yuan ($ 189) per tonne. He compensated himself. This caused investors who are looking for a fall in iron ore prices to notice the strong resistance and pullback of iron ore and change their opinion about the future of iron ore prices. Last month’s iron ore trading deal in August, the most traded on the Singapore Stock Exchange (SGX), was largely limited to this scenario. As of 6:43 a.m. Singapore time, the stock was up $ 0.12 per tonne from $ 208.73 per tonne on Monday, mainly due to the resurgence of iron ore in the market and the stock market. It was international.
*** World iron ore demand in the price record
Another issue that can be seen in global iron ore trading is that this market is still current despite the recent slump in prices. The physical trading market has buyers at these prices, and this is something you least expect. Iron ore reserves in China’s two major importing ports rose from 2.1 million tonnes last week to 2.1 million tonnes. However, inventories in the ports of Tangshan, Jing Tong and Qingdao fell by 4.1 percent. With declining blast furnace operating rates, production constraints as well as a possible increase in iron ore supply in the second half of this year, the trend of increasing iron ore inventory in Chinese ports is expected to continue.
In the physical market, merchants in ports [China] need to sell their [iron ore] products, which are relatively willing to trade at relatively low discounts. While traders are now cautiously trading iron ore shipments with high premiums, the rise in prices is justified.
*** Different views on the future of iron ore trading
A trade source in Shanghai has stated that the reduction of crude steel production is a general principle and the demand for iron ore will weaken in the second half of 2021. He added that iron ore prices will be under pressure for the rest of the year. Market talk of local governments not needing more crude steel mills than last year has reduced market inflammation. Yesterday’s trading was relatively weak by this trading source and extended this to the entire international iron ore market.
The National Development and Reform Commission, with the aim of controlling the sharp and unreasonable increase in commodity prices, reaffirmed in a regular meeting that it could curb the iron ore market with more orderly measures. However, some participants in the meeting pointed out the consequences of this grammatical action and preferred the market to find its way in a classic way. In this regard Fines for iron ore trading have also brought good revenue to the Qi government. In addition, Jimblebar fines are being traded in Chinese ports, and some steel mills are rumored to be using them to replace some.
*** Take a look at marine and physical iron ore transactions
Pilbara Blend fines traded at 1,520 yuan per WMT in Shandong Province on Tuesday, while trading at 1,512-1,524 yuan per WMT on Monday. The latest price is equivalent to $ 221 per ton in the marine market. Iron ore futures traded at 1231 yuan ($ 190) a tonne in September, up 6 yuan a tonne from the end of Monday. The price of the 2110 iron ore contract rose more than 5.5 percent in trading today to 1,225 yuan / ton, although it is still down about 250 yuan from the physical market.
Following the rise in iron ore prices, steel products also rose in price. Manufacturers of steel products are close to the cost line, and any increase in raw material prices will lead to higher prices for steel products. According to today’s trading, rebar and hot rolled sheets in the futures market experienced price increases of 107 and 86 yuan, respectively.
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