Here is Friday’s iron ore table:
Here is the 12m swaps chart with resistance in the $120 region:
Again with holiday closures in China not much broader action. According to Reuters, the forwards action is on the back speculative buying:
Bids for iron ore forward swaps remained firm on Friday, reflecting investor expectations spot
iron prices will bounce back as Chinese steel mills replenish inventories when they return next week.“People are betting that the Chinese will restock next week so we’ve seen some activity in swaps,” said a Singapore-based
trader.The thin volumes, however, may have also helped exaggerate price gains, he said. Volume cleared by the Singapore Exchange – which clears the bulk of cash-settled iron ore swaps traded globally – increased to 812 lots, or 406,000 tonnes, on Thursday from 322 lots on Wednesday.
Last month, the amount of swaps cleared by the Singapore Exchange peaked at nearly 4,000 lots on a daily basis, based on
exchange data. Iron ore hit a three-year low of $86.70 in September and while prices have since rebounded to above $100, they have struggled to go much higher in the face of poor steel demand in China, the world’s biggest consumer.Responding to slower global steel demand, Brazil’s Vale, the world’s top iron ore miner, said on Thursday that it plans to suspend operations at three Brazilian iron ore pellet plants and increase output of lower-value mine products.
More production pulled. And further down the cost curve this time. Tick, tick, tick for Pilbara production cuts.
