From ANZ:
Iron ore prices plunged another 4% to USD112.9/t. Iron ore prices are 29% lower than the most recent high in February and are at a seven and a half month low. FOB Australian coking coal prices also declined to USD140.35/t on bearish sentiment. A 1.3% decline in the most active Shanghai Oct rebar contract weighed on both markets. Steelmakers are reportedly sitting on the sidelines as they wait for more signals from the weak steel sector. Meanwhile, squeezed margins have reportedly forced buyers to cut bids to USD149-150/t CFR for Australian premium hard coking coal. Reports suggest some of the small private-owned steel furnaces in Hebei province are being closed to reduce costs and control production. Adding to the bearish sentiment, CISA said steel product prices will fall sharply this year due to lingering overcapacity and declines in raw material prices.
ANZ Commodity Daily 834 300513.pdf by Pablo Roberts
