Iron ore price volatility weak operation

Last week, under the leadership of macro-pessimistic expectations, iron ore spot, futures have seen a relatively large decline.

　　As of August 9, iron ore contract I2001 closed at 639.0 yuan per tonne, a weekly decline of 11.80 per cent. Looking ahead to the future, due to the serious contraction of steel production profits or even losses, some steel mills have taken the initiative to reduce production, in the short term iron ore demand has the possibility of sustained decline. On the supply side, Australia's iron ore shipments returned to normal, the overall maintenance of year-on-year growth trend, Brazil's shipments steadily rose, imported iron ore to Hong Kong overall volatility higher. The increase in the inventory of imported iron ore ports is still not significant due to the slight decrease in port volume and the easing of production restrictions in Tangshan, Hebei Province.

　　With the gradual resumption of shipments from mainstream mines and the active reduction of demand by steel mills, it is expected that the inventory of imported iron ore ports will remain on an upward trend.

　　Overall, the steady recovery of iron ore supply, phased demand reduction will accelerate the improvement of supply and demand, the superimposed macro pessimism has not yet been fully released, iron ore is expected to continue to maintain the trend of weak volatility in the short term.

　　Actively limiting production after steel mill losses Due to oversupply led to a continuous increase in inventory, overlay market pessimistic expectations of end demand, finished steel prices fell sharply, threaded steel long process spot production profit from the previous 200 yuan / ton to 300 yuan / ton to a loss state, some areas of steel mills took the lead in reducing production.

　　It is expected that in the later stages, the scope of the active production limit of steel mills will be further expanded, iron ore demand will decline in stages.

　　The supply of imported iron ore has steadily picked up According to data released by the relevant agencies, the total shipments of iron ore from Australia and Brazil in the week to August 4 amounted to 23.172 million tonnes, an increase of 978,000 tonnes month-on-month. Among them, Australia's total shipments amounted to 1.5964 million tons, an increase of 137,000 tons month-on-month, of which 14.266 million tons were sent to China, an increase of 1.004 million tons month-on-month, and Brazil's total shipments were 7.208 million tons, an increase of 841,000 tons month-on-month. After the disappearance of factors such as hurricanes and port maintenance, Iron ore shipments in Australia rebounded to high levels over the same period, while shipments from Brazil as a whole also rebounded steadily. Overall, the trend of increasing iron ore supply is more obvious.

Previous Page：Xinhua International Time Review: Free Trade Cooperation "Little Orgasm" Highlights the Trend of the Times
Next Page：Brazilian Deputy Minister of Economy Troyjo: Brazil and China should expand cooperation in investment and finance

BROWSE SIMILAR INDUSTRY NEWS