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Daily Iron Ore Price, Commodities and Precious Metals Update - August 2014
Topic Started: 4 Aug 2014, 01:35 PM (8,698 Views)
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Shanghai rebar at record low as China worries mount, Dalian ore extends losses

Thu Aug 21, 2014 12:53pm IST
By Manolo Serapio Jr

SINGAPORE, Aug 21 (Reuters) - Shanghai rebar fell to a record low on Thursday as weakness in China's manufacturing sector added to signs that the economy has slowed again, with iron ore futures also approaching their lowest level since they were launched last year.

It was the 10th straight session of declines for rebar futures and marked the fourth day that the price for the most-active contract set an all-time low. A cooling property sector in China had helped fuel the sharp decline and the latest disappointing factory reading did not help.

Growth in China's vast factory sector slowed to a three-month low in August as output and new orders moderated. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index fell to 50.3 from July's 18-month high of 51.7, missing a Reuters forecast of 51.5.

The most-traded rebar contract for delivery in January on the Shanghai Futures Exchange fell to as low as 2,980 yuan ($484) a tonne, the weakest for a most-active contract since the exchange launched rebar futures in March 2009. It closed down 0.6 percent at 2,983 yuan.

"If there is no massive economic stimulus package, we cannot see any improvement in steel demand. Actually, it is impossible for the central government to offer a massive stimulus package," said Cao Bo, an analyst at Jinrui Futures in Shenzhen.

The weaker PMI reading adds to growing risks for the world's No. 2 economy and counters earlier optimism, brought on by signs of firmer factory activity and exports, that it may see stronger growth in the second half of 2014 on government efforts to shore up the economy.

"We have been arguing that China's growth rebound in the second quarter was largely policy-driven and is not self-sustaining," Barclays economists said in a note.

Iron ore for January delivery on the Dalian Commodity Exchange slipped 0.6 percent to end at 647 yuan per tonne. It dropped earlier to 644 yuan, near June's low of 642 yuan which was the weakest for a most-traded contract since Dalian introduced it in October last year.

The price may hit a new trough below 630 yuan in four months amid plentiful supply, said Jinrui Futures' Cao.

"As shipments from Brazil and Australia to China remain high, and domestic iron ore production maintains steady growth, the status of excess supply may continue for a longer time," he said.

Benchmark 62-percent grade iron ore for immediate delivery to China .IO62-CNI=SI fell 0.8 percent to $92.30 a tonne on Wednesday, its lowest since June 20, according to data compiled by Steel Index.

The spot price has fallen 31.2 percent this year, pushing some high-cost producers off the market and leaving more to low-cost suppliers.

Brazilian miner MMX Mineracao e Metalicos SA said it plans to temporarily close its last producing mine, Serra Azul, due to the fall in iron ore prices.

Rival Brazilian miner Vale SA, the world's largest iron ore producer, said it secured a preliminary license to expand its flagship Carajas mine in the northern state of Para, which should help the company win a bigger slice of the global iron ore market.

Read more: http://in.reuters.com/article/2014/08/21/markets-ironore-idINL4N0QR1W520140821
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Perthite
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That's a nasty fall in coking coal yoy.
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DCE takes three steps to realize internationalization of iron ore futures

2014-08-21 GMT+8:00

BEIJING, Aug. 21 (Xinhua) – China's Dalian Commodity Exchange (DCE) will actively explore ways to realize internationalization of its iron ore futures, including implementation of iron ore futures bonded delivery and introduction of international investors, according to Li Zhengqiang, general manager of DCE.

Li made the remarks at the 2014 China Coal &Coke Industry Conference held in East China'sQingdaocity on Thursday.

The exchange will take three steps to realize internationalization of iron ore futures. First, it will implement bonded warehouse receipt delivery for iron ore futures and realize internationalization of logistics this year. Second, it will use crude oil futures for a reference in 2015 to strive to internationalization of currency exchange. In the end, it will bring in international investors to make the exchange a pricing center for international trading of iron ore, said Li Hongjiang, director assistant of Industrial Product Business Department of DCE.

Read more: http://en.xinhua08.com/a/20140821/1374283.shtml
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Poontang
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Perthite
25 Aug 2014, 02:35 PM
Almost in the 80's.

:tu:
Fell below $90 last night...



http://www.theage.com.au/business/mining-and-resources/iron-ore-slips-below-us90-mark-as-china-concerns-weigh-20140826-108czh.html
Edited by Poontang, 26 Aug 2014, 09:43 AM.
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Dalian iron ore hits contract low, spot slides on weak steel demand

Mon Aug 25, 2014 10:59am IST
By Manolo Serapio Jr

SINGAPORE, Aug 25 (Reuters) - Chinese iron ore futures fell
on Monday to their lowest since they were launched last year,
while weaker buying interest pushed down prices for spot cargoes
further on slower steel demand.
Benchmark spot iron ore is now trading close to this year's
low of $89 a tonne and a further decline would take it to its
weakest since September 2012, as top, low-cost miners lift
output even more in a bid to take out smaller producers.
The most-traded January iron ore contract on the Dalian
Commodity Exchange was off 0.3 percent at 644
yuan($105) a tonne, after earlier touching 639 yuan, the lowest
since the contract was launched in October.
That piles more pressure on spot prices which last week fell
3.5 percent, the deepest decline since mid-June. Iron ore for
immediate delivery to China .IO62-CNI=SI slid 2 percent to
$90.10 a tonne on Friday, its lowest since June 17, according to
data compiled by Steel Index.
The September iron ore contract on the Singapore Exchange
dropped 0.6 percent to $89.50 a tonne on Monday.
"When the price drops this fast, Chinese mills tend to wait
and see and buying activity could slow down. Supply is still
huge and we see various offers from miners, big mills and
traders," said an iron ore trader in Shanghai.
Big Chinese steel mills have been reselling excess cargoes
from their long-term contracts with suppliers amid a global
surplus that Goldman Sachs expects to hit 72 million tonnes this
year and surge to 323 million tonnes in 2018.
A cargo of Australian Pilbara iron ore fines was sold at $90
a tonne on the globalORE platform on Monday, according to the
platform's website. That was down from Friday's $91.50 per tonne
for the sale of a similar grade at a tender, traders said.
Weaker steel prices have weighed on iron ore as a slowing
Chinese economy and sluggish property sector darkened the
outlook for demand. The most-active January rebar contract on
the Shanghai Futures Exchange fell to 2,961 yuan a
tonne on Monday, its lowest since the exchange launched rebar
futures in March 2009.
The poor sentiment surrounding the Chinese economy following
recent soft data along with high inventories of iron ore at
China's ports have kept the downward pressure on iron ore
prices, Australia and New Zealand Bank said in a note.
"Support at the $90/tonne level looks reasonable, having
bounced off that level in mid-June when port stocks were at
record highs," the bank said.
Stocks of imported iron ore at China's ports rose by 300,000
tonnes to 109.7 million tonnes as of Aug. 22, ending a four-week
decline, according to data tracked by industry consultancy
SteelHome. SH-TOT-IRONINV
The port inventory hit a record high of 113.7 million tonnes
in July.

Read more: http://in.reuters.com/article/2014/08/25/markets-ironore-idINL3N0QV0XI20140825
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CBA Commodities Daily Alert 25-Aug-14

Posted Image

China’s gold imports fall in July

China’s net gold imports from Hong Kong fell by 42% m/m and
81% y/y to 21.1t in July, likely reflecting weaker consumer demand in
part due to China’s anti-corruption campaign.

Copper futures on the COMEX rose on demand hopes after a US
Federal Reserve gauge of the US economy beat forecasts in July. US
WTI crude oil fell on views that US crude oil inventories at Cushing
rose last week. Brent crude oil advanced on concerns that violence in
Libya will curtail the country’s crude oil output. Iron ore fell by 1.0%
to USD89.20/t (CFR China). The LME was closed for trading
yesterday due to a public holiday.

Alcoa, the largest US aluminium producer, plans to permanently shut
its 150ktpa Portovesme aluminium smelter in Italy due to high
operating costs. The company curtailed production from the smelter
in November 2012 and said its decision to close the facility will
reduce the company’s aluminium smelting capacity to 3.6Mt.

From January to June, Taiwan’s iron ore imports fell by 4.9 % y/y to
10.8Mt, while its average realised iron ore price declined by 4.6% y/y
to USD127.9/t.

Australian coal miner, Guildford Coal, has started exporting
metallurgical coal from its 1.2Mtpa Baruun Noyon Uul coking coal
mine in Mongolia. The company expects to hit full output capacity by
the end of the year and has the option to expand to 2Mtpa
depending on market conditions.

CAP Mineria’s 2.5Mtpa expansion of its El Romeral iron ore project in
Chile could begin operations by December if the company manages
to receive environmental approval. The company initially expected to
begin operations in early 2014.
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All over for iron ore now.

How's your $120 call looking now Timmy. :bye:

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Last nights iron ore futures.

Another major hiding.

Just for future reference, all have dropped under $90, except for the current month, and one is at $87.

http://www.barchart.com/futures/commodities/ITI


T---I---M---B---E---R..........
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Perthite
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obliterated.
Bear is certainly roaring on this one.
Edited by Perthite, 26 Aug 2014, 07:01 PM.
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Weak Chinese property sector sends iron ore to two-year low

August 27, 2014 - 9:32AM
Max Mason

Posted Image

Dwindling property prices in China have reignited fears that demand for steel in the world's second largest economy is slowing, pushing the price of iron ore to a fresh two-year low.

On Tuesday, benchmark iron ore for immediate delivery to the port of Tianjin in China fell to $US88.90 a tonne, down from its Monday closing price of $US89.20.

The price of iron ore has dipped for seven straight sessions, falling a total of 4.8 per cent since last Monday.

The decline marks another two-year low for the commodity, which has fallen close to 35 per cent this year and is at its cheapest since September 2012 when prices fell as low as $US86.70.

The beginning of the seven-day slump coincides with official data from China's National Bureau of Statistics showing the price for new homes fell in July in almost all cities that the government tracks. It was the third straight month of average new home price declines in China.

Rather than being an issue of oversupply, which has been an ongoing story for iron ore in recent history, the most recent bout of weakness is more closely correlated to a weak property market in China, Deltec chief investment officer Atul Lele said.

"The property sector in China has been quite weak, given residential property accounts for about 24 per cent of fixed asset investment in China, it's understandable that weakness in the property sector is feeding through to weakness in the iron ore price," Mr Lele said.

In June, the price of iron ore hit $US89 per tonne, but was then helped by the introduction of target stimulus packages from the Chinese government, however Me Lele said that this time it is unlikely that there will be that safety net.

"There's no prospect of stimulus, especially given China has been benefiting from the export upswing over the past few months and the PMI numbers have been relatively good up until the latest HSBC data point," Me Lele said.

Read more: http://www.smh.com.au/business/markets/weak-chinese-property-sector-sends-iron-ore-to-twoyear-low-20140827-108tmk.html
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