voda schreef op 25 augustus 2021 17:07:
Iron ore, scrap firm as steel output recovers
Seaborne iron ore prices were steady on Wednesday after recovering for several days from last week’s slump. Recovering Chinese steel output also helped to stabilise iron ore markets.
The Kallanish KORE 62 Fe index increased $0.70/t to $150.39/dry metric tonne cfr Qingdao. The Kallanish KORE 65% Fe index inched $0.44/t higher to $1174.70/dmt cfr, and the KORE 58% Fe index gained $1.19/t to $119.71/dmt cfr.130,000 tonnes of Newman Lump sold at a floating price.
On the Dalian Commodity Exchange January 2022 iron ore settled up CNY 22.5/t at CNY 810/t ($125.09/t), while on the Singapore Exchange September 62% Fe futures settled down $0.11/t at $147.99/t. The same contract for 65% Fe and 58% Fe futures settled down $0.47/t at $167.83/t, and up $8.34/t at $118.85/t respectively.
Chinese scrap and billet prices meanwhile continued to trend higher. 6mm+ heavy scrap delivered to mills in the Yangtze River delta gained CNY 9/t to CNY 3,726/t. In Tangshan, billet prices gained another CNY 20/t to CNY 4,950/t.
Expectations for iron ore demand have been supported by
higher steel output in mid-August
. According to the China Iron and Steel Association (CISA), its member mills produced 2.14 million tonnes/day of crude steel over 11-20 August, up 4.6% from the first ten days of the month. Mill steel inventories meanwhile increased 2.13% over the ten days to 14.93mt.
The news suggests that steelmakers, which had cut production sharply in July, are now being allowed to produce a little more. Although the rhetorical emphasis on steel output cuts has continued, concerns over economic growth have prompted some support for end-user financing.
Tomas Gutierrez UK