Texture from Reuters:
Notwithstanding the pressure from stabilising supply from top exporters Brazil and Australia, iron ore prices should find support as steel margins have improved, analysts at ANZ Research said in a note.
“Steel mills have been reluctant to restock raw materials as margins fell amid a gloomy outlook for steel demand,” they said. “However, margins have started rising again, raising the spectre of some pent up demand coming through the iron ore market.”
Reluctant but soon reaching the point where they’ll no choice over new year. To prices:
- Tianjin spot fell 1.1% to $82.50, near breakdown again
- DCE 6 months fell sharply to 605 overnight
- SGX 12 month firmed to $69.72
- Chinese port stocks fell 3mt to 131.65
- rebar futures down to 3350
No change to outlook. Roughly stable price to Q2, 2020 with downside risks.