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Steel Industry

Imported Iron Ore Price To Fluctuate Under Downward Pressure

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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

Iron-ore storms past $100 as China soothes Evergrande concerns

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By Krystal Chia | Bloomberg

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

China’s Steps Turn Iron Into World’s Most Volatile Commodity

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By Annie Lee | Bloomberg

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

China’s coal futures hit record as exchange tries to cool rally with fee hike

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Prices have rallied 34 per cent so far this year as miners struggle to meet robust demand from the nation’s economic rebound.

By Krystal Chia | Bloomberg

Prices have rallied 34% so far this year as miners struggle to meet robust demand from the nation’s economic rebound. Safety and environmental inspections, mining accidents and an unofficial ban on Australia coal has disrupted supply and tightened the market. A recent worsening in diplomatic relations with Australia has also given the raw material another boost.

Futures reversed a drop earlier Tuesday morning after authorities raised trading fees, typically a step that’s taken to cool markets. Trading fees for iron ore futures were also increased on Tuesday.

“The market has been unusually explosive,” said Huatai Futures Ltd. analyst Wang Haitao. Inspections in major coal-producing regions have been rife with corruption investigations in Inner Mongolia, overproduction probes in Shaanxi province, and environmental checks in Shanxi province. …Full Story

Australian iron-ore and coal exports fall in January

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By Esmarie Iann | Mining Weekly

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

Iron-ore prices to trend lower in first six months of 2021

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BY: Tasneem Bulbulia | Mining Weekly

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

As China-Australia Ties Worsen, Iron Ore Remains Bulletproof

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By Michael Heath | Bloomberg

As China-Australia relations descend into a morass of sanctions and mutual recriminations, Beijing is delivering a huge cash windfall to Canberra and Australia’s economy through its insatiable demand for iron ore.

China has few alternatives as it seeks to stimulate its economy post Covid-19 through infrastructure investment, with Australia accounting for more than half of iron ore shipments globally. If Beijing were to try to purchase solely from non-Australian producers, at best it could get 56% of the volumes it typically imports, according to analysis by Goldman Sachs Group Inc…Full Story

Iron ore prices hurtle to a seven-year high

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From Hellenic Shipping News

For the key steelmaking ingredients of iron ore and coking coal, it was a tale of two different markets this week. 

The price of iron ore punctured the $US120 per tonne ($164.70/tonne) barrier this week, its highest since early 2014 This was on account of a stronger market for steel in China which is targeting massive investment in its infrastructure. 

For the 62 per cent grade iron ore fines product, spot prices were transacting around $US121.75 per tonne, according to Metal Bulletin. 

A week ago, iron ore cargoes delivered to ports in China were trading around $US116.85 per tonne, the price reporting agency said…Full Story

Pakistan – Steel builds nations

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From BR Research | Business Recorder

Pakistan has one of the lowest consumptions of steel per capita at 35 kilograms, against 197 kilograms for Middle East, and 71 kilograms for India.

It compares favorably with Africa, which is even lower at 28 kilograms. Steel builds nations; this was the South Korean mantra, which catalyzed its growth. It is the primary raw material for infrastructure development, and industrialization.

Absence of an indigenous steel industry keeps an economy exposed to vagaries of exchange rate and price volatilities, while adversely affecting balance of payments situation. It further slows down infrastructure and industrial development, as any significant volatility in either commodity prices, or exchange rates often leads to significant cost over-runs…Full Story

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