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Oct.22.2020 1USD=6.6556RMB
  SteelHome >>Raw Material>>Market Info>>Weekly Report
 
Weekly Report of China Iron Ore Market for September 30-October 10, 2020

http://en.steelhome.cn [SteelHome] 2020-10-12 09:49:31

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Abstract

Seaborn iron ore prices rose in China last week by and large. Affected by the China National Day holiday, the seaborn transactions decreased significantly.

On the spot market, the price inched up. For mills, most of them were active in post-holiday procurements. In order to improve cash flows, traders focused on iron ore sales.

According to SteelHome survey, the basis narrowed, and the increment of futures prices were higher than the one of spot prices. With the stricter production curbs in Tangshan and other places in China, the portside iron ore stockpiles may further increase.

SteelHome considers that prices of iron ore may observe rangebound movements in the short run amid robust demand.

Trading Tips

Traders are suggested to properly sell iron ore products. Mills are suggested to keep the in-plant inventory at their normal consumption levels.

Weekly Review    

By October 10, 2020, SteelHome (China) Raw Materials Price Index (SHCNMI) was 144.46 points, up 1.74% on week; Iron Ore Price Index (SHCNOI) was 157.82 points (969 yuan per ton), up 0.87% week-on-week; Domestic Iron Ore Index was 137.84 points (969 yuan per ton), up 0.36% from the last week; Imported Iron Ore Index was 124.57 dollars per ton, up 3.17% week-on-week.

As of October 10, seaborne price for 61.5%-Fe PB fines increased by 4.5 dollars/t to 123.5-124.5 dollars/t. Meanwhile, the spot price for 61.5%-Fe PB fines rose by 10-15 yuan/t to 905-910 yuan/t. Tangshan domestic-produced 66%-Fe iron ore concentrate fines increased by 20 yuan/t to 1020 yuan/t.

On October 10, the most-traded iron ore contract on the Dalian Commodity Exchange closed at 830 yuan a tonne, up by 21 yuan a tonne from the one on September 30.

China's Blast Furnace Operating Rate Rallied

The BF operating rate at 202 Chinese steel mills that represents 833.1002 million tons of crude steel capacity was 94.88% on October 9, up 0.07 percentage point from last survey. In terms of BF capacity, running capacity was 790.4352 million tons out of 833.1002 million tons, making operating rate 94.88%, up 0.07 percentage point from last period.

In terms of BF volume, running BF volume was 848,539 cubic meters out of total 884,483 cubic meters, meaning operating rate was 95.94%, up 0.05 percentage point from last period.

Iron Ore Shipments from Overseas Mines Dipped, Arrivals at Chinas Ports Inched Up

Australian iron ore shipments decreased by 239,000 tonnes week-on-week to 17.107 million tonnes, while Brazil's shipments down by 61,000 tonnes to 7.678 million tonnes. The total shipments of the two countries were 24.785 million tonnes, down 178,000 tonnes week-on-week.

Meanwhile, daily iron ore arrivals at five largest Northern ports (Qingdao, Rizhao, Tianjin, Caofeidian and Jingtang) reached 1.77 million tons this week, up 120,000 tons from last week.

SteelHome considers that iron ore arrivals from overseas mines to China may slightly fluctuate in the near term.

Port Inventory Kept Rising

According to SteelHome survey, iron ore inventory 46 main Chinese ports was 123.6 million tonnes as of October 9, 2020, up 950,000 tonnes from September 30.

Of the stocks, about 56.7 million tonnes belong to traders. The stocks comprise 24.9 million tonnes of lump, 10.95 million tonnes of pellet and 11.9 million tonnes of concentrate fines. Daily shipment was 3.01 million tonnes, up 220,000 tonnes from the previous week.

Mill Inventory and Procurement Interest

From SteelHome survey in North China, iron ore stockpiles would support around 16 days consumption in the leading local steel mills. Alongside Yangtze River, iron ore stockpiles remained at around 25-30 days consumption in long-term contract steel mills, and at around 18-23 days consumption in mills who purchase iron ore mainly in spot market.

Outlook

Supply: the arrivals of iron ore at main Chinas ports may slightly fluctuate in the near term as the shipments from Australia and Brazil remained at high levels.

Demand: China blast furnace operating rate may drop amid stricter production curbs. Therefore, the demand for iron ore may fall back from the current lofty heights.

Inventory: the portside inventory may further increase as the shipments out of ports may decrease.

Price: the portside iron ore stockpiles may further increase amid stricter production curbs. With the demand for steel products on the overall markets, however, SteelHome considers that prices of iron ore may observe rangebound movements in the short run.

Trading Tips

Traders are suggested to properly sell iron ore products. Mills are suggested to keep the in-plant inventory at a normal consumption level.

International News

Vale on the West III Project>>

Brazilian Iron Ore Exports Up by 18.5% YoY in September 2020>>

Port Hedland's Iron Ore Shipments to China Down 1% MoM in September 2020>>

Table 1: Price Summarization of Iron Ore Concentrates in China

1 USD=6.7796 RMB (Yuan) on October 10

Liaoning

Hebei

Shanxi

Anhui

Shandong

Jiangsu

Fujian

Jiangxi

Hubei

Guangdong

Sichuan

Yunnan

Gansu

Xinjiang

2020/10/10

950

1020

970

1060

1065

1065

890

940

1005

890

668

750

990

880

2020/9/30

980

1000

970

1007

1055

1065

930

940

1005

900

668

750

990

880

Change

-30

20

0

53

10

0

-40

0

0

-10

0

0

0

0

Change

-3.06%

2.00%

0.00%

5.26%

0.95%

0.00%

-4.30%

0.00%

0.00%

-1.11%

0.00%

0.00%

0.00%

0.00%

Table 2: Price Summarization of Pellet in China

1 USD=6.7796 RMB (Yuan) on October 10

Hebei

Hebei

Liaoning

Shanxi

Shandong

Jiangsu

Anhui

Hubei

Gansu

Sichuan

Fe Grade

63%

63.50%

62%

61%

63%

62%

62%

62%

61%

54%

2020/10/10

1005

1080

1030

945

1200

960

1020

1030

1130

620

2020/9/30

1005

1080

1030

945

1200

960

1020

1030

1130

620

Change

0

0

0

0

0

0

0

0

0

0

Change%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

 Table 3: Iron Ore Indices Collection

Index

Fe Grade

2020/10/9

2020/9/30

VAR

VAR%

SteelHome Iron Ore Index SHCNOI (Yuan)

Composite

963

959

4

0.42%

SteelHome Domestic Iron Ore (SHCNDOI) (Yuan)

65%

968

964

4

0.41%

SteelHome Imported Iron Ore (SHCNIOI) (US Dollar)

65%

132.78

130.06

2.72

2.09%

SteelHome Imported Iron Ore (SHCNIOI) (US Dollar)

62%

122.69

120.25

2.44

2.03%

SteelHome Imported Iron Ore (SHCNIOI) (US Dollar)

63%

122.88

120.97

1.91

1.58%

SteelHome Imported Iron Ore (SHCNIOI) (US Dollar)

61%

117.25

114.99

2.26

1.97%

SteelHome Imported Iron Ore (SHCNIOI) (US Dollar)

58%

109.57

107.71

1.86

1.73%

Metal Bulletin Iron Ore Index (US Dollar)

62%

125.72

123.47

2.25

1.82%

Metal Bulletin Iron Ore Index (US Dollar)

58%

108.3

103.76

4.54

4.38%

Platts Iron Ore Index (US Dollar)

62%

125.85

123.15

2.7

2.19%

Platts Iron Ore Index (US Dollar)

58%

113.3

109.85

3.45

3.14%

SGX Iron Ore Swap Settlement (US Dollar)

62%

121.08

121.24

-0.16

-0.13%


(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837 18725550282)
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