The most-traded DCE I2401 iron ore contract closed down 0.4% at 861 yuan/mt today. Iron ore traders’ shipment enthusiasm was average, and some were cautiously waiting. The overall market transaction atmosphere today was sluggish. Transaction prices of PB fines in Shandong were concentrated in the range of 929-940 yuan/mt, down 5-15 yuan/mt compared with yesterday, prices in Tangshan area were 950-960 yuan/mt, 0-10 yuan/mt lower than yesterday’s prices…Full story
Action is urgently needed as the collective cost of port and rail failures in SA over the past 18 months is R150bn
by SIYABONGA MTHEMBU AND LANCE PETERSEN – Business Day
It has been estimated that the collective cost of port and rail failures in SA over the past 18 months is R150bn. From another perspective, the collapse of Transnet is set to cost the country R1bn a day in economic output, the equivalent of 4.9% of our country’s annual GDP, or R353bn. Take a moment to let those numbers sink in…Full story
BEIJING (Reuters) -Chinese regulators may take steps to curb surging iron ore prices, the state-owned Shanghai Securities Journal said on Friday, without providing details on any actions to be taken.
The report comes after China’s state planner said last week it had sought expert advice on how to deal with rising prices. Read Full Story
Iron ore’s roller-coaster ride in 2021 shows no signs of easing, with prices ending an unprecedented slump to move sharply higher as investors monitor simmering debt troubles at China Evergrande Group.
The developer’s onshore property unit said it reached an agreement with yuan bondholders on an interest payment, offering some relief after fears over Evergrande’s financial stability sparked a global flight from risk. China’s central bank also boosted short-term cash into the financial system, helping steady commodity markets.
In Singapore, iron ore futures climbed more than 15%, surging back above $100 a ton from their lowest close in 16 months. Events around Evergrande spooked the market earlier in the week and the steelmaking material was already oversold, said Atilla Widnell, managing director of Navigate Commodities…Full Story
Iron ore has been in a bull market for more than two years, and it’s not about to end soon, according to Goldman Sachs.
“It would be wrong to say that the bull market for iron ore, you know, is on the cusp of ending,” said Nicholas Snowdon, head of base metals and bulks research at the investment bank.
It will likely only return to a “comfortable position” from 2023, Snowdon said on Tuesday at the Singapore Iron Ore Forum, which is part of Singapore International Ferrous Week.
Iron-ore, one of the hottest commodities in the early days of the raw materials rally, has now become the most volatile as bulls and bears joust over the trajectory of prices.
In a series of wild swings, the ore that fuels China’s vast steel industry surged to a record, collapsed into a bear market and then returned to a bull market in the space of about a month. Its gyrations in the past 30 days mark the mineral as the most volatile of the two dozen most traded commodities around the world.
Iron ore is being buffeted largely by confusion over how government policy will affect demand from steel mills in top consumer China.
China wants to cut steel production but control prices, and to reduce investment but maintain employment, said Tomas Gutierrez, an analyst at Kallanish Commodities Ltd. “As policy shifts to keep the desired balance between these goals, the outlook for steel will improve or worsen…Full Story
Expensive freight rates for chartering Panamax and Supramax bulk vessels have forced traders with iron ore and pellet cargoes from East Coast India to China to opt for bigger Capesize ships in a rare move, sources said.
The East Coast India-to-China route is usually dominated by smaller bulkers given the stem sizes traded on this sector are largely 50,000-55,000 mt.
The sharp rise in hiring Supramax class ships, which are typically in the 52,000-57,000-dwt range, have seen charterers combining three 50,000-mt (plus/minus 10%) stems to ship them on a Capesize.
Time-charter rates on Supramax ships have been heard fixed around $31,000/d for a tonnage opening in Chittagong for a trip via East Coast India to China, while the voyage charter rate was heard indicated in the $20-$22/mt levels for a 55,000-mt (plus/minus 10%) iron ore cargo from Paradip to China…Full Story
New data by the Australian Bureau of Statistics (ABS) has reported a A$3-billion, or 9%, decline in exports for the month of January, driven by a A$1.5-billion, or 10%, decline in the export of metalliferous ores.
“The decline in metalliferous ores was driven by a decline in the quantity of iron-ore exported in January. Despite the decline, exports of metalliferous ores are the second highest on record behind December 2020,” said ABS head of international statistics Andrew Tomadini...Full Story
The surge in iron-ore price between the second and fourth quarter of 2020 has run its course, says Fitch Solutions Country Risk and Industry Research.
It notes that prices should grind lower during the first half of this year as supply improves and demand growth slows.
On the supply side, improving production growth from Brazil will help to loosen tight supply in the seaborne market, Fitch Solutions says…Full Story
Ship operators who carry Australia’s lucrative iron ore exports from Western Australia’s Pilbara region have baulked at new charges aimed at solving nearby dust pollution problems.
From March 1, the Pilbara Ports Authority will impose a $13,450 levy on every major ship load of iron ore from the world’s largest bulk export port at Port Hedland, 1,650km north of Perth.
The WA Government will use the money to compensate residents in up to 400 nearby dust-affected homes under a $200 million voluntary property buyback scheme negotiated with industry…Full Story