NEWS
Iron Ore   Materials  

Iron ore futures down

Even though at the beginning of the month iron ore was trading above $120 a tonne, the highest in more than five years, prices are starting to come down, closing at about $100 a tonne in the last market session.

Prices are being affected by a pick-up in supply aided by Vale’s (NYSE:VALE) incessant efforts to restore capacity after the Brumardinho dam burst in January. U.S. President Donald Trump’s trade war with China, fueled by a recent proposal to slap an additional 10% tariff on $300 billion in Chinese imports from September 1, is also taking a toll on the value of iron ore as mills’ demand is starting to cool off.

However, futures are the hardest hit by the current state of affairs. According to Bloomberg, futures in Singapore fell as much as 8.6% to $94.32 a tonne, with ore for September closing around 7.3% lower at $95.63 a tonne. Benchmark spot material dropped to $99.50 a tonne on Monday. 

Also, last week, the most-traded iron ore on the Dalian Commodity Exchange, with January 2020 expiry, slumped 4.2% to 724.50 yuan, or $102.76 a tonne, the sharpest one-day fall since July 5.

“Miners’ shares retreated, with markets focused on the consequences of China allowing the yuan to weaken to the lowest in more than a decade,” Bloomberg’s analysis reads. The Chinese currency sunk beyond 7 per dollar for the first time since 2008.

Experts quoted by the media outlet say that the situation with the yuan paired with uncertainty around the Washington-Beijing trade relations spurs concerns about economic growth and has had an impact on investors’ interest in raw materials.

Fortescue (ASX:FMG) shares fell by 7.2% in Sydney, while Vale’s slumped as much as 5.5% in Sao Paulo.

Manufacturing has also started to slow down, with key markets such as Germany dropping its crude steel output by 5.8% y-o-y, Turkey by 11% y-o-y, France by 3.4% y-o-y, and Brazil’s by 3.1%.

 

News No: 5776
Date: 2019/08/06 - 17:03
News Source: MINING.COM

Iron ore  trading  Germany  economic  materials 

Comments:

Leave a Comment:

   
   
   
 

India’s NMDC plans sharp increase in iron ore output

India's state-controlled NMDC plans to lift its iron ore output significantly in the 2020-21 fiscal year starting 1 April, anticipating robust sales and higher prices on the back of a supply shortage.
 

India's Sail lifts 2019 iron ore output

State-controlled steel producer Steel Authority of India (Sail) increased iron ore output by 5.25pc to around 22mn t in 2019, a record high for the company.
 

ArcelorMittal hikes coil offer to €500/t exw in north

ArcelorMittal has raised its offer across Europe on the back of firm import offers, raw materials and extended lead times.
 

US sanctions Iranian metals industry after attack

President Donald Trump today rolled out a new round of economic sanctions targeting Iran's metals industry in an effort to punish the country for a missile attack earlier this week on two US military bases in Iraq.
 

Demanding metal specifications for Foundries

Hitachi High-Tech launches OE750 – a next generation, high-performance OES analyser for complete metals analysis control.
 

Supply issues, steel gains lift Indian iron ore prices

India's domestic iron ore prices have increased sharply in January, as steel mills and pellet producers step up purchases amid expectations of supply disruptions from April. An increase in steel prices has also prompted mining companies to raise offer prices.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners