Iron ore prices continued their jumbled performance in Monday’s market, despite recurring strength in Chinese steel prices.
Metal Bulletin recorded the spot price at $67.81 a tonne, while benchmark 62% fines slipped 1%, breaking a four day 3.7% rally during this time.
Weakness in iron ore prices benchmark didn’t spread to other grades
It came as a bit of a surprise that the weakness found in the benchmark wasn’t seen in other grades. It was a mixed bag kind of feeling when it came to iron ore prices yesterday.
In fact, the price of 58% fines actually gained momentum rising 0.9% at $67.81 a tonne — its highest level to date since June 14.
The mixed performance came against Monday’s continued improvements in Chinese rebar futures, which were prompted by optimism in production curbs, as well as strong demand keeping steel prices raised.
However, an analyst from ANZ bank warned that:
‘Environmental inspections in Shanxi province are threatening to disrupt steel production in the region. This saw steel futures in China rise.’
Meanwhile the 2019 contract ended its session at 4,284 yuan, peaking at 4,299 earlier, leading the largest levels from August 27.
And for all this strength in steel contracts, sadly the optimism didn’t run down into iron ore prices in Dalian, which saw a 947.5 yuan finish — where prices were behind Friday night’s close of 502 yuan.
Coking coal futures proved to be more in line, increasing to 1,320 from 1,293 yuan. While coke contracts remained relatively unchanged from Friday’s close at 2,409 yuan.
Overnight movement in Chinese commodity futures triggered drops in ore prices
This week got off to a mixed start, with the performance of the futures markets all over the place.
As expected, come Tuesday after yesterday’s movements in Chinese commodity futures overnight, there were losses across all boards as reported by Business Insider.
SHFE Rebar ¥4,176, -1.83%
DCE Iron Ore ¥494.00 , -0.80%
DCE Coking Coal ¥1,292.00 , -0.15%
DCE Coke ¥2,358.00 , -1.44%
The only thing that can be said for the future of iron ore prices, is that it is subject to change coming into new territory, with Chinese economic woes.
For Money Morning
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