23
2021
-
06
Iron ore plunge!
On June 21, the Price Department of the National Development and Reform Commission and the Price Supervision and Competition Bureau of the General Administration of Market Supervision went to the Beijing Iron Ore Trading Center to conduct a survey to learn more about iron ore transactions and price changes this year, and held a special symposium to study Do a good job in maintaining the supply and price of iron ore and other bulk commodities.
On June 21, the Price Department of the National Development and Reform Commission and the Price Supervision and Competition Bureau of the General Administration of Market Supervision went to the Beijing Iron Ore Trading Center to conduct a survey to learn more about iron ore transactions and price changes this year, and held a special symposium to study Do a good job in maintaining the supply and price of iron ore and other bulk commodities.
The meeting pointed out that the sharp rise in iron ore prices and continued high operation has increased the pressure on the production and operation of enterprises in the middle and lower reaches, causing great concern from all sectors of society. The state supports the healthy development of iron ore in stock trading platforms, encourages relevant market entities to trade in compliance with laws and regulations, and will pay close attention to changes in in stock trading prices, promptly investigate abnormal transactions and malicious speculation, and implement monopoly agreements, disseminate price increase information, and bid up Acts such as price hoarding and hoarding will be severely punished and publicly exposed in accordance with the law to maintain a good market order.
As soon as the news came out, iron ore futures fell all the way. As of 3 pm today, iron ore futures fell 108 yuan/ton, a drop of 8.79 percent. Market sentiment was obviously frustrated. Factors on the raw material side changed, which finally led to the decline of the entire black industry.
On the supply side, Rio Tinto's shipment volume, which has attracted much attention in the early stage, began to show an upward trend. Although the total global shipment volume fluctuated little, the supply began to grow. According to relevant data, the total amount of iron ore shipped by Australia and Brazil was 26.135 million tons, an increase of 1.111 million tons from the previous month, higher than the weekly average of 2.359 million tons this year. The arrival volume of 45 ports in China was 22.117 million tons, up 1.614 million tons from the previous month.
On the demand side, the industry began to enter the off-season in June. Coupled with the impact of the production restriction policy, steel mills have operated more maintenance. Judging from the continuation of blast furnace maintenance last week and the maintenance of new blast furnaces this week, the operating rate of blast furnaces in 247 steel mills was 80.21, down 0.13 from last week (2021.6.13-20, the same below) and 11.33 from last year. The daily average molten iron output was 2.4401 million tons, down 500 tons from the previous month and 26200 tons. Average daily iron production will continue to decline, demand continues to shrink, iron ore fundamentals have turned to supply strong demand weak trend.
In terms of inventories, China's 45 ports of iron ore inventories totaled 120.8875 million tons last week, down 2.7842 million tons from the previous week. The average daily dredging volume was 3.0053 million tons, an increase of 22400 tons on a weekly basis. At present, the number of ships in port is 145 and 3 more. There was an increase in iron ore storage and an increase in port inventories.
On the market side, affected by the news of the joint research announcement, market sentiment is depressed, and it may be difficult to make a big change in the short term, and downstream demand is shrinking, and steel mill procurement operations are also reduced.
Source: National Development and Reform Commission, Business Agency
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