Posted on 02 Dec 2020
On the Shanghai Futures Exchange the January 2021 rebar contract closed CNY 14/tonne lower than Monday at CNY 3,892/t ($591/t), while the same contract for hot rolled coil closed up CNY 3/t at CNY 4,178/t. In Tangshan, billet prices dipped CNY 20/t to CNY 3,590/t.
The Kallanish KORE 62% Fe index gained another $2.38/t to $133.37/dry metric tonne cfr Qingdao on Tuesday. The Kallanish KORE 65% Fe index increased $1.94/t to $144.90/dmt cfr, and the KORE 58% index surged $6.49/t to $125.47/dmt cfr. 85,000t of Brazilian Blend sold at $131.9/t with a laycan in 1-10 January.
On the Dalian Commodity Exchange January 2021 iron ore settled down CNY 3/t at CNY 903/t, while on the Singapore Exchange January 2021 62% Fe futures settled up $1.10/t at $127.22/t. the same contract for 65% Fe and 58% Fe futures settled up $0.98/t at $140.79/t, and up $8.61/t at $119.31/t respectively.
Chinese steel markets continue to see lower demand from construction, putting pressure on steel prices. Iron ore stocks remain low however, including at mills. Mills have been attempting to slow price increases by purchasing only as needed, but are still being forced to return periodically to the market. Traders remain optimistic about the coming year despite concerns over credit tightening and its impact on real estate and other sectors.
Source:Kallanish
