Commodities

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The baffling strength of iron ore revenues

I was going to write this post yesterday but Damien Boey has beaten me to it: The trade balance has come in surprisingly strong, delivering “nominal easing” to offshore-exposed companies and their relatives. The September trade balance surprised well and truly to the upside, rising to $7.2 billion from an upwardly-revised $6.6 billion. We were

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Daily iron ore price update (reluctant)

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.

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Daily iron ore price update (stuck)

Texture from MySteel: Many Chinese steelmakers, together with some iron ore traders, are actively drawing down their iron ore stocks at hand when mills in many areas are facing frequent curbs on their steelmaking operations, affecting iron ore consumption, Mysteel Global learned Tuesday. “We are cutting our procurement of seaborne iron ore cargoes from the

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Daily iron ore price update (coke smoke)

Texture from Reuters: Coking coal futures in China gained the most in four weeks on Tuesday amid market talks about fresh import curbs on the steelmaking raw material, following brisk purchases in recent months by the world’s biggest coal buyer and consumer. …With China’s coking coal imports in the first nine months of the year

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Cannon-Brookes attacks Fuhrer Morrison

Every modern nation needs good billionaires to fight evil ones. I have my issues with Mike Cannon-Brookes and the Atlassian cheap labour arbitrage model but on climate change he’s excellent, via David Crowe: “The people protesting over climate change are not quiet Australians. They are being loud because the government is quiet on the climate,”

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Daily iron ore price update (the trapdoor)

Texture from Reuters: Vale, the world’s largest iron ore miner, said on Friday that Brazilian regulator ANM had allowed it to resume its Alegria mine operations, which were interrupted last March after a “stress test” failed to guarantee its stability. company said the resumption of mining activities at Alegria will allow it to restore 8

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Daily iron pore price update (Brazil surge)

Texture from Reuters: “(Iron ore) is getting hit from both sides – softening demand and improving supplies from Australia and Brazil in the second half of 2019,” analysts at ANZ Research said in a note. Hebei province has issued an “orange” smog alert effective Nov. 1, with pollution expected to be “severe”, the local environment

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Import, export prices signals terms-of-trade lift

The Australian Bureau of Statistics (ABS) has released export and import prices for the September quarter, which portends a lift in Australia’s terms-of-trade when the national accounts are released in early December. According to the ABS, export prices rose by 1.3% over the September quarter and were up by 14.7% over the year, whereas import

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A new iron ore deluge builds

Via RIO at Bloomie: Iron ore shipments from Rio Tinto Group could rise as much as 5% in 2020 as the producer recovers from operational issues in Australia this year, the exporter says Thursday. The No. 2 miner will also have consistent capacity for volumes of about 360m tons a year once a first phase of the

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Daily iron ore price update (warning siren)

There are major warning sirens blaring around the ferrous complex. Texture from Reuters: “Expectations for steel consumption was pretty bad, but fell too much,” said Zhao Yu, an analyst with Huatai Futures. “Now it turns out (consumption is) not that bad, so prices recouped.” She added that the consumption was mainly in real estate and

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Daily iron ore price update (plenty)

Texture from Bloomie: Cargoes of the steelmaking material shipped via Hedland may swell to a new high in the fiscal year to June 2020, and over this calendar year may beat 2018’s total, Chief Executive Officer Roger Johnston said in an interview. Last year, iron ore volumes were 508.5 million tons, with most going to

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China extends Aussie coal bans

Via the AFR: China’s restrictions on Australian coal are expected to remain in place into next year as Beijing seeks to moderate a spike in foreign imports of the commodity to protect domestic supply. While there had been hopes in Canberra that the unofficial quota on Australian coal exports to China would be wound back

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Daily iron ore price update (ports)

Texture from Reuters: “Investors remained cautious amid subdued Chinese steel margins and construction demand,” ANZ Research analysts said in a note. “An undersupplied (global) market remains the reality and this has seen prices holding up near $90 a tonne,” ANZ analysts said. Rubbish. The market is oversupplied and will get more so when Vale returns

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Daily iron ore price update (February)

Texture from Reuters: But Darren Toh, data scientist at Singapore-based steel and iron data analytics company Tivlon Technologies, said he remained bullish on iron ore. Steel inventory is easing and the pace of infrastructure projects is accelerating, said Toh, adding that increasing property investment was also being seen. Meh. It’s seasonal. To the charts: Spot

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Daily iron ore price update (Samarco)

Texture from Reuters: Steel product inventories in China notched up a third weekly decline in the week to Oct. 25, down 600,000 tonnes from the previous week at 9.85 million tonnes, marking the lowest level since mid-January, according to data compiled by Mysteel consultancy. That is normal for time of year and it has cleared

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Daily iron ore update (restock time?)

Texture from Reuters: “While Tangshan cities are facing production curbs to reduce pollution, other steel plants are reported to increase their production because of attractive profitability,” Argonaut Securities said in a note. China’s top steelmaking province of Hebei had implemented overnight inspections on illegal industrial works and emissions as an effort to crack down pollution,

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Daily iron ore price update (Vale schmale)

Texture from Reuters: China’s iron ore futures extended gains for a third session, buoyed by continued supply worries, after Brazil’s Vale closed a tailing dam earlier this month, and lowered full year iron ore and pellet sales guidance The increase in prices was curbed by cooling demand as China is coming into autumn-winter heating season,

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Daily iron ore price update (spot weakness)

Texture from Argus: China’s steel sector profitability remained sluggish in the peak sales month of October as a slowing economy and high output rates pressured product prices. The average gross profit margin on rebar sales is around 200-400 yuan/t ($29-57/t) and up to Yn200/t for hot-rolled coil (HRC), with some HRC sellers barely breaking even

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Daily iron ore price update (conniption)

Texture from Reuters: China’s central province of Henan has issued an orange smog alert, the second highest in the nation’s three-tier pollution alarm system, which will be applied to 12 cities. The alert means pollution controls in heavy industries, including steel and coke, will be strengthened from Oct. 18 to Oct. 23. In China’s top