1. Iron Ore Market
Seaborn prices for iron ore decreased in China this week by and
large. The procurement interested dropped in recent days. In order
to improve cash flows, most traders were active in sales. Some with
high costs awaited further market developments, being inactive in
low-prices selling.
According to SteelHome survey, China iron ore stockpiles kept rising
this week. Under tepid demand for iron ore, however, it is unlikely
to observe the further price drop in the short run.
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 |
Oct. 15 |
119.47 |
118 |
990 |
890 |
815 |
1030 |
Oct. 13 |
123.3 |
122 |
1005 |
905 |
830 |
1020 |
Oct. 10 |
124.57 |
123.5 |
1005 |
905 |
830 |
1020 |
Oct. 15 vs Oct.
13 |
-3.83 |
-4 |
-15 |
-15 |
-15 |
10 |
Oct. 15 vs Oct.
10 |
-5.1 |
-5.5 |
-15 |
-15 |
-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 124.5 million tonnes as of October 15, 2020, up
900,000 tonnes from October 9.
Of
the stocks, about 57.5 million tonnes belong to traders. The stocks
comprise 25.6 million tonnes of lump, 11.05 million tonnes of pellet
and 12.1 million tonnes of concentrate fines. Daily shipment was
3.09 million tonnes, up 80,000 tonnes from the previous week.
Meanwhile, daily iron ore arrivals at five largest Northern ports
(Qingdao, Rizhao, Tianjin, Caofeidian and Jingtang) reached 1.69
million tons this week, down 80,000 tons from last week.
(b)
Rio Tinto's 3Q2020 Iron Ore Production Down 1% YoY to 86.4Mlnt in
Pilbara, WA
T3: Summary in Q3 2020
|
|
Q3 2020 |
vs Q3 2019 |
vs Q2 2020 |
9 MTHS 2020 |
vs 9 MTHS 2019 |
Pilbara
iron ore shipments (100% basis) |
Mt |
82.1 |
-5% |
-5% |
241.7 |
0% |
Pilbara
iron ore production (100% basis) |
Mt |
86.4 |
-1% |
4% |
247.4 |
2% |
IOC iron
ore pellets and concentrate production |
Mt |
2.3 |
-21% |
-15% |
7.7 |
-4% |
T4: Production Guidance
|
2019 Actuals |
2020 Sept YTD |
2020 |
Pilbara
iron ore (shipments, 100% basis) (Mt) |
327 |
242 |
324
to 334 |
IOC iron
ore pellets and concentrate (Mt) |
10.5 |
7.7 |
10.5
to 12.0 |
|
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 after previous rises in China this week.
With the active production in steel rolling mill plants, the overall
demand for semis products increased, bringing the stockpiles to keep
dropping. And the supply was tight on the market.
According to SteelHome survey, steel consumers were inactive in
high-priced steel transactions amid slack steel sales lately.
Therefore, some traders have lowered the price to make the
transactions completed.
SteelHome considers that prices of semis may observe rangebound
movements in the short run.
T5: Prices of Q235 in Main China’s Market
in
yuan/t |
Tangshan |
Jiangyin Port |
Zibo |
Linfen |
Handan |
Shenyang |
Oct. 15 |
3390 |
3470 |
3460 |
3420 |
3590 |
3390 |
Oct. 13 |
3420 |
3490 |
3470 |
3450 |
3610 |
3420 |
Oct. 10 |
3390 |
3480 |
3440 |
3420 |
3600 |
3390 |
Oct. 15 vs Oct.
13 |
-30 |
-20 |
-10 |
-30 |
-20 |
-30 |
Oct. 15 vs Oct.
10 |
- |
-10 |
20 |
- |
-10 |
- |
Source: SteelHome
2.1 Highlight
Semis stocked at 16 large warehouses in Tangshan were 461,700 tonnes
on October 15, 2020, down around 45,000 tonnes from October 9, 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. |