Demand Supply glut has taken its toll over Chinese iron ore market, bringing the steel making raw material prices to the lowest in two months at USD 81/MT, CFR China.
As has been speculated the record high inventories has become the hurdle for a further demand from the participants due to which the speculative investors have abandoned the product with mass exit from the futures market today.
As futures fell sharply, sellers tried to strike some of the deals compromising margins while fearing higher losses in future, whereas procurements were delayed by manufactures in expectations of further fall in prices.
The estimates till the last week accounted 132 million tonnes of iron ore at the Chinese ports, which is a matter of concerns for the investors. On the other hand volatility in HRC market today got the prices unusually down compared to the daily typical pattern of prices in relation to the rebar and has influenced the withdrawals.
Billet
Billet was being traded at 3,050 Yuan (USD 443/MT) including VAT, down 160 Yuan (USD 25/MT) compared with the prices last Friday
Dalian Commodity Exchange
Iron ore futures contract closed at 549.50 Yuan (USD 80/MT) on Monday, down 31 Yuan (USD 4.50/MT) from last Friday’s closing price.
Shanghai Futures Exchange
The rebar futures contract closed at 3,057 Yuan (USD 444/MT) on Monday, down 83 Yuan (USD 12/MT) from last Friday’s closing price.
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