Iron ore prices for May 24, 2019: Spot up. Paper roared overnight as port stocks tumbled again last week 127.7mt. Steel is riding the coat tails. But it’s not all good on that front: China Steel Corp (CSC, 中鋼) on Friday announced that it would cut steel quotation prices for domestic deliveries in the third
Iron ore prices for May 23, 2019: Everything stalled after Dalian warned speculators. Upwards bias unchanged for me until Brucutu returns.
Via FreightWaves: According to chief executive officer Birgitte Ringstad Vartdal, “Golden Ocean’s first-quarter results reflect a weaker market environment brought about by disruptions in the iron-ore trade.” She explained on the conference call with analysts, “Going into 2019, there was strong conviction in the market. Additional tons of iron ore were to come from Brazil
Iron ore prices for May 22, 2019: Everything ripped the roof off. Goldman says sell, at the FT: The combination of strong demand and weak supply has pushed prices up almost 40 per cent since January to a five-year high of $103 a tonne, according to a price assessment by S&P Global Platts. While that
Dalian iron ore still marching higher: Via Reuters: Steel mills have been operating at low inventory levels and only purchasing hand-to-mouth from ports due to high raw material prices. Market estimated that average iron ore stocks at mills have fallen to around 20 days of use, down from normal inventory levels of 30 days. Ore
Iron ore prices for May 21, 2019: Spot up. Paper up. Steel up. Vale down: Brazilian mining company Vale has suspended freight transport on a portion of its Vitoria-Minas railroad as a precautionary measure against the risk of a breach at the Sul Superior tailings dam, which is connected to the closed Gongo Soco iron
Iron ore prices for May 20, 2019: Spot unchanged. Paper down. Steel stable. Rebar inventories are drawing at the same pace as last year indicating good demand. Iron or port stocks fell more slowly to 131.7mt but more falls are ahead unless Brucutu returns.
Iron ore prices for May 17, 2019: Be upstanding for the tone, something I thought we would never see again. Paper is still flying. Steel is stuck. Remember that this is the weakest seasonal period. Unless Brucutu comes back, H2 is going to see $120 as China keeps stimulating to offset the trade war.
Iron ore prices for May 16, 2019: Spot to the moon. Paper too. Not steel. Steel mill margins are going to get crushed and, over time, they’ll try to destock. But that is besides the point for now. With China cornered by the trade war and needing MOAR stimulus and Brucutu offline the only way
We all know who made the Kingslayer. It was Australian mining that killed Kevin Rudd and his mining tax, putting the knife in Bill Shorten’s hand, who backed Julia Gillard. Later, the Kingslayer struck again, this time to sink the knife into Julia Gillard, as she failed abysmally to sell the groundbreaking carbon price, also
Iron ore prices for May 15, 2019: Everything up on hopes of MOAR Chinese stimulus. As if they could build more of the tried: The bull case for iron ore is laid out by Credit Suisse at the FT: At the start of the year most analysts were predicting a broadly balanced market — forecasts
Via Clyde Russell at Reuters: As part of its latest round of retaliatory tariffs on US imports, Beijing increased the duty on LNG shipments from 10 per cent to 25 per cent. …China imported 25 US LNG cargoes in the first half of 2018, and this slipped to just eight in the second half, according
Iron ore prices for May 14, 2019: Spot, paper and steel down. Just goes to show that if the trade war takes pre-eminence in the months ahead then the shock to the global economy, largely through crashing equities, will damage Chinese steel demand before any stimulus can offset it. Quite a tug-of-war we’ve got going
Iron ore prices for May 13, 2019: Spot down. Paper up. Steel down. The paper market is placing its stimulus bets after the trade deal collapsed. Spot was not interested but will likely follow in due course. MOAR credit hitting the supply crunch is a juicy prospect. Though if the broader market correction gets out of
Iron ore prices for May 10, 2019: Spot is firm and right at break out. High grade ore has already broken out to new highs. Paper less so. Steel is firm enough and rebar inventories are drawing at roughly the same pace as last year. May/June is the weakest iron ore period on the calendar
Via Reuters: The NDRC last year had ordered local governments to help broker deals between zombie firms and their creditors, and to draw up restructuring plans by June 2019. Steel mills will also be encouraged to launch large-size scrap recycling and processing centres and to adopt electric-arc furnaces that only use scrap metals to make
Iron ore prices for May 9, 2019: Spot firm. All else down on trade war tensions and weak Chinese credit. RIO is tempted, says Sebastian Jacques at the AFR: “What the team is doing is to ask, if we add additional volume what will be the impact on price, you do the model,” he said.
Iron ore prices for May 8, 2019: Spot down. Paper down. Steel down. Trade war weighing. Also soft China trade data. Steel exports were decent 6.33mt but iron ore imports crashed to 80.7mt in April, though largely on supply problems. Port Hedland shipping rebounded rebounded in April to 42mt so May should look better
Iron ore prices for May 7, 2019: Spot soared. Paper flamed out overnight on trade war worries. All else is stable. Port stocks fell another 2.4mt last week and are free falling. CISA steel output is at its highest ever in mid-April, above 2mt per day. Via Reuters: The Brazilian miner on Monday said that
Via Reuters: Brazilian miner Vale SA said on Monday that a court had ordered it to halt operations at its Brucutu iron ore mining complex, reversing a lower court decision that had allowed the mines activities to resume. The company also said it expects its 2019 sales of iron ore and pellets to be at
Iron ore prices for May 6, 2019: Spot down. Paper better. Steel down. WE;re entering the weak May/June period and if we add a trade deal accident do not look for strength here.
Via the Saturday Paper’s Mike Seccombe: Clive Palmer is not delusional. Those too-good-to-be-true promises, the 151 hapless, hopeless candidates running in every lower house seat, the risible “shadow minister” titles, have been set up to create the illusion of a serious party with a broad suite of policies and deep interest in the disparate concerns
Some nice data from Clyde Russell: Australia’s iron ore exports rebounded in April after being hit by a cyclone the prior month, but the surge in shipments wasn’t enough to offset declining volumes from Brazil in the wake of January’s tailings dam disaster. Australian exports were about 69.1 million tonnes in April, according to preliminary
By Leith van Onselen The RBA has released its commodity price index for April, which increased by 0.9% in SDR (currency weighted) terms – the key determinant of the terms-of-trade – but was unchanged in Australian dollar terms: Preliminary estimates for April indicate that the index increased by 0.9 per cent (on a monthly average
Iron roe prices for April 30, 2019: Everything up into the holidays and getting a lift from a lousy PMI implying MOAR debt. The steel PMI was better, up 7.2 to 52.1 as well. New orders led the way up 5.4 points to 51.7. We’re bouncing along the bottom here for Chinese demand. More weakness
Iron ore price for April 29, 2019: Spot, paper and steel all up. Chinese stocks cratered to 136mt over the past few weeks. The pace of draw down would be a major alarm if it were not for the return of Brucutu. My guess is mills are drawing on inventories as the shipping hole of
Iron ore prices for April 26, 2019: Everything is petty stable for now. CISA steel output numbers for early April ripped higher. It will be interesting to see if they converge with last year headed into mid-year. Rebar inventories peaked higher this year in Q1 but are drawing down faster so there’s obviously still life
By Leith van Onselen The Australian Bureau of Statistics (ABS) has released export and import prices for the March quarter, which portends a lift in Australia’s terms-of-trade when the national accounts are released in early June. According to the ABS, export prices rose by 4.5% over the March quarter and were up by 15.3% over
Iron ore price for April 25, 2019: Spot down. Paper down. Steel down. I believe the peak is in here as China’s southern rainy season builds and delivers the May/June bulks correction. Beyond that, there is reason to believe we’ll see further steady declines in average prices. Chinese demand is waning, via Bloomie: The top
Iron ore prices for April 23, 2019: Spot is still firm. Paper is stable (SGX volatility appears some glitch). Steel going nowhere. A little equilibrium for now.
