According to Fast Market, most of the iron ore sales on Monday, August 16, despite the limited trading activity in the physical market, were accompanied by price increases. Prices may have been declining, but the growth of prices in a week is quite noticeable. In the following, we will evaluate iron ore transactions in the global market and China. Please be with Artan Press.
*** The latest Metal Bulletin report on iron ore transactions in the Chinese market
According to Artan Press and quoting the fast market, iron ore trading has been revived with a relative success in East Asian markets. The 62% Fine Iron Ore Index traded in CFR format from Qingdao Port at $ 163.52 per tonne. This amount increased by $ 1.45 compared to the previous day. Also, low-grade alumina iron ore with a purity of 62% from the same port in CFR trading format had a price increase of $ 1.29 per ton.
۵۸% pure iron ore with a similar trading format was priced at $ 131 per ton. This figure has experienced a price increase of $ 0.81 per ton. Australian iron ore was also priced at $ 191 in the CFR trading format at the port. 62% Australian fine iron ore traded in the market yesterday without rising prices.
*** Relative growth of iron ore transactions compared to the same weekly
Most January iron ore futures traded lower on the Dalian Commodity Exchange (DCE) at the start of the session. But prices were higher than last week. Estimates show that the value of iron ore trading compared to last Friday’s closing price was 841.50 yuan (1.1%) compared to that day’s trading. Finally, the price of Dalian stock exchange iron ore was traded at $ 130 per ton. Meanwhile, last month’s September iron ore trading deal on the Singapore Stock Exchange (SGX) rose.
As of 18:01 Singapore time on Monday afternoon, we are seeing a growth of $ 1.78 per tonne compared to last Friday’s settlement price of $ 159.35 per tonne. A business source in Singapore said liquidity in the physical market is limited. Especially in the secondary market with maritime transport format where demand is very weak due to environmental risks. Due to heavy rains in eastern China, shipping insurance costs have risen sharply. Therefore, it seems that the futures market will see a drop in prices in the coming days.
*** Reducing the correlation between iron ore transactions and futures markets
Another Singaporean business source told FastMarket that the positive correlation between the physical iron ore trading market and the futures market is weakening. He added: “Although the outlook for iron ore demand is expected to decline by the end of the year.” But high-risk trading situations have increased the profit margin of the financial market, which has not been a reflection of the real market situation. However, a trading source in southern China said iron ore prices were unlikely to fall sharply this week.
The weekly source added that weekly iron ore shipments to China have decreased and HRC production is relatively stable. These two factors can prevent the continuous decline in prices in the iron ore market. Demand for the upstream steel chain in the second half of the year seems to even prevent the Chinese government from controlling prices. Therefore, the iron ore market has strong support to maintain the trading arch.
*** BHP mine in maintenance phase
A fine iron ore offshore deal was made early yesterday, which could be due to reduced supply in the coming weeks. BHP mine maintenance is expected to be completed soon. While the stock of JMBF port in China is running out, it is likely that the continuation of this situation will cause the level of demand in this market to fall sharply.
This is a major social risk for the port city, which has focused entirely on iron ore supply. It should be noted that the port of BHP has traded 80,000 tons of 62% pure iron ore plus a $ 13 discount per ton for the month of October and must make the necessary plans for this commitment. The Beijing Iron Ore Trade Center (Corex) traded 170,000 tons of a 61% pure fine iron ore at $ 159.85 per tonne cfr China on September 4-13.
*** Increasing the attractiveness of green steel in futures trading
Fine Pilbara traded at 1111-1130 yuan per tonne in Tangshan, Lianyungang City and Shandong Province on Monday, up from 1120-1140 yuan per tonne last Friday. It should be noted that the last price range of $ 163-160 per ton in the maritime market has seen an increase in iron ore trading prices. The most recent futures deal for January iron ore was closed at 850.50 yuan ($ 131) per tonne on Monday.
The deal was up 9 yuan per tonne from last Friday’s closing price. Decarbonization seems to complicate a complex market such as steel. The latest Metal Bulletin analysis shows that the “real price of green steel” has become important to the steel market due to the strictness of changing the production phase of factories. It is likely that with the tightening of steel production, we will see increasing prices in this area.
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