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1. Iron Ore Market
Seaborn prices for iron ore continued dropping in China this week. With
the bearish outlook, traders were active in sales. The overall
transactions, however, were slack as the procurements
fell short of expectations.
According to SteelHome survey, China iron ore stockpiles reached 120
million tonnes, due mainly to the dropped shipments and restricted truck
transportation in North China.
Though
some mills may have preholiday procurements, SteelHome considers that
iron ore prices would be unlikely to greatly rebound in the short run
amid bearish outlook on the overall market.
T1: China Iron Ore Price by Product
|
|
SteelHome Index (USD/t) |
Seaborne Price (USD/t) |
Qingdao Port (yuan/t) |
Tangshan (yuan/t) |
|
62%-Fe
Imported Iron Ore |
61.5%-Fe PB fines |
65%-Fe
IOCJ |
61.5%-Fe PB fines |
56.5%-Fe Super Special fines |
66%-Fe
Concentrate fines |
|
Sept. 24 |
117.54 |
116 |
990 |
890 |
815 |
1040 |
|
Sept. 22 |
119.94 |
118.5 |
995 |
895 |
820 |
1040 |
|
Sept. 18 |
124.78 |
123.5 |
1020 |
920 |
830 |
1050 |
|
Sept. 24 vs Sept. 22 |
-2.4 |
-2.5 |
-5 |
-5 |
-5 |
- |
|
Sept. 24 vs Sept. 18 |
-7.24 |
-7.5 |
-30 |
-30 |
-15 |
-10 |
Source: SteelHome Database
*Need
More Data? Just Click SteelHome
Database (Microsoft's Windows Version)
1.1 Highlight
(a)
according to SteelHome survey,
iron ore inventory at 46 main Chinese ports was 120.3 million tonnes
as of September 24, 2020, up 2 million tonnes from September 17.
Of the
stocks, about 55.9 million tonnes belong to traders. The stocks comprise
24.9 million tonnes of lump, 10.5 million tonnes of pellet and 11.2
million tonnes of concentrate fines. Daily shipment was 2.91 million
tonnes, down 100,000 tonnes from the previous week.
Meanwhile, daily iron ore arrivals at five largest Northern ports
(Qingdao, Rizhao, Tianjin, Caofeidian and Jingtang) reached 1.6 million
tons this week, up 10,000 tons from last week.
(b)
Xiamen ITG Group (ITG) and Roy Hill completed the first international
yuan-denominated Letter of Credit iron ore transaction on 23 September,
2020. The L/C was issued by Bank of China Xiamen Branch, with a total
settlement of about 150 million Yuan (nearly 22 million US dollars).
This
was a new experience for ITG and Roy Hill that the former completed the
first international yuan-denominated Letter of Credit transaction in
China as a trading firm, and this was the first time that Roy Hill
involved in international yuan-denominated Letter of Credit transaction.
1.2
Trading Tips
Traders are suggested to properly sell iron ore. Mills are suggested to
keep the in-plant inventory at a normal consumption level.
2. Semis Market
Prices
of semis dropped in China this week by and large. Steel rolling mill
plants maintained the normal production, keeping the demand for semis
products unchanged. The preholiday procurements fell short of
expectations.
Affected by the stricter production curbs in Tangshan, the blast furnace
operating rate dropped in China, and the supply of semis reduced a bit.
SteelHome considers that prices of semis may observe rangebound
movements in the short run.
T2: Prices of Q235 in Main China’s Market
|
in
yuan/t |
Tangshan |
Jiangyin Port |
Zibo |
Linfen |
Handan |
Shenyang |
|
Sept. 24 |
3330 |
3430 |
3380 |
3360 |
3500 |
3330 |
|
Sept. 22 |
3320 |
3430 |
3370 |
3350 |
3470 |
3320 |
|
Sept. 18 |
3380 |
3470 |
3430 |
3410 |
3520 |
3380 |
|
Sept. 24 vs Sept. 22 |
+10 |
- |
+10 |
+10 |
+30 |
+10 |
|
Sept. 24 vs Sept. 18 |
-50 |
-40 |
-50 |
-50 |
-20 |
-50 |
Source:
SteelHome
2.1
Highlight
Semis
stocked at 16 large warehouses in Tangshan were 632,400 tons in the week
ended September 24, 2020, down around 95,500 tons from September 17,
2020.
2.2
Trading Tips
Steel
rolling mill plants are suggested to purchase semis products mainly as
their normal consumption levels amid escalating trade uncertainties. |
