The ferrous complex responded only modestly to China’s RRR cut which tells us something about sentiment. Spot and steel were firm and paper soft:
In news, there are some bearish signals appearing at the margin.
There are 1051 words left in this subscriber-only article.
Start your free 14-day trial today!
In India, which has been the marginal supplier over the past six months, prices are now falling:
Mining major NMDC has reduced iron ore prices by ₹200 per tonne with effect from July 10.
…From ₹5,850 for Lump ore and ₹4,560 for Fines on April 3, the prices moved up to ₹7,650 and ₹6,560 respectively, following two more revisions, including the last on May 12. In June, the firm had maintained the prices.
NMDC is keen on ramping up production to 44 million tonnes (MT) this fiscal. A senior official had recently said prices were ‘looking good’ and that there was good demand in the country. In FY21, NDMC had produced 34.15 MT and had sold 33.25 MT.
Word on the ground was that the last auction was much weaker than these prices suggest.
As well, both RIO and VALE has resumed full port activities at two major docks which will all all three majors to ramp volumes for the rest of the year (RIO in particular has lagged badly):
I remain of the view that big downside is head.