On June 21st, the Price Department of the National Development and Reform Commission and the Price Supervision and Competition Bureau of the State Administration for Market Regulation went to Beijing Iron Ore Trading Center to conduct an investigation, to understand the iron ore trading and price changes since this year, and to hold a symposium to study and do a good job in ensuring the supply and stabilizing the price of iron ore and other bulk commodities.
The meeting pointed out that iron ore prices have risen sharply and continued to run at a high level, increasing the pressure on the production and operation of middle and downstream enterprises, which has aroused great concern from all sectors of society. Countries support the healthy development of the iron ore spot trading platform, encourage the market main body, in accordance with the law of compliance, at the same time will keep a close watch on the spot market price changes, timely screening abnormal transactions and malicious speculation behavior, price monopoly agreement, spread information, bid up prices and hoarding behavior will be punished according to law and public exposure, maintain a good market order.
News out, iron ore futures all the way down, as of 3 p.m. today, iron ore futures down 108 yuan/ton, down as high as 8.79%, the market sentiment is obviously frustrated, the change of raw material end factors, and finally drive the whole black industry down.
On the supply side, the shipment volume of Rio Tinto, which received much attention in the early stage, began to show a pickup trend. Although the global shipment volume fluctuated little, the supply began to increase. According to relevant data, the total amount of iron ore shipped from Australia and Brazil was 26.135 million tons, with a month-on-month increase of 1.11 million tons, higher than the weekly average of 2.359 million tons this year. China's 45 ports reached 22.117 million tons, an increase of 1.614 million tons month-on-month.
Demand, June began to enter the industry off-season, plus the impact of the production limit policy, steel mill maintenance operation, from last week's blast furnace maintenance continued and this week's new blast furnace maintenance situation, 247 steel mill blast furnace operating rate of 80.21%, last week (2021.6.13-20, the same below) down 0.13%, down 11.33% year on year; The average daily output of molten iron was 2.440,100 tons, down by 0.05 million tons month-on-month and 26,200 tons year-on-year. Daily average molten iron production will continue to decline, demand continues to shrink, iron fundamentals have turned strong demand for weak trend.
Inventory, China's 45 ports of iron ore inventory last week total 120,887,500 tons, week on week down 2,784,200 tons. The daily average port opening capacity is 3,005,300 tons, with a month-on-week increase of 22,400 tons. At present, the number of ships in port increased by 3 from 145. Iron ore storage has increased, port inventory growth.
Market, affected by the announcement of joint research, market sentiment is depressed, there may be a big change in the short term, and the downstream demand reduction, steel mill procurement operations are also reduced.
