Wednesday, 21 Dec 2011
Xinhua reported that sharply decreasing fixed asset investment in the railways and increased housing inventory in the property market are cutting demand for steel, resulting in falling prices of imported iron ore in the world's second largest economy.
According to the Xinhua-China Iron Ore Price Index that was released that inventories of iron ore at 25 of China's major sea ports dropped 1.6% to 97.99 million tonnes in the week ending on Dec 19 from the previous week.
According to the index, which is compiled by the Xinhua News Agency to track iron ore inventories and imports in Chinese spot markets Last week's imported iron ore stock was 1.61 million metric tons less than that of one week earlier.
The price index for 63.5% purity iron ore imports fell 4.1% to hit 139 points while that for 58% purity iron ore imports decreased by 1.7% WoW to rest at 117 points.
Analysts said the declining prices of iron ore are a result of a sluggish steel market amid falling investment in the nation railway projects and increased housing inventory in the property sector.
According to data from the Ministry of Railways, fixed asset investment in railways in the first 11 months of the year plunged 28.4%YoY to CNY 492 billion. The decline rate widened by 3.2 percentage points compared to that in the first ten months.
In November, more major cities saw drops in new home prices from October as housing sales slipped 1.2%YoY with major developers such as China Vanke experiencing a 20% sales decrease last month.
Analysts predicted a further downward trend for the iron ore prices in the coming week as steel companies are becoming cautious in purchases amid expectations that downstream businesses will cut demand for steel.
(Sourced from Xinhua)
Showing posts with label index. Show all posts
Showing posts with label index. Show all posts
Wednesday, December 21, 2011
Tuesday, March 22, 2011
Iron Ore-Key index slips as Shanghai rebar hits 4-mth low
Tue Mar 22, 2011 3:48am GMT
By Manolo Serapio Jr. and Ruby Lian
SINGAPORE/QINGDAO, March 22 (Reuters) - Chinese steel rebar futures steadied on Tuesday after drifting to four-month lows earlier in the session amid a murky demand outlook that weighed on spot iron ore prices and forward swaps.
China is the world's biggest steel producer and consumer and traders usually look to the direction in Chinese steel prices when deciding whether or not to buy iron ore, the key material in making steel.
The most traded rebar contract for October delivery on the Shanghai Futures Exchange was up a modest 0.3 percent at 4,669 yuan a tonne by the midday break, after falling to as low as 4,627 yuan earlier, its weakest since Nov. 17.
A number of Chinese iron ore traders have remained worried about steel prices and demand in the short term, and are thus reluctant to make forward bookings with suppliers.
Some of them are also facing difficulty securing bank loans to be able to build their raw material stockpiles after a series of moves by China to tighten liquidity, including another increase in cash reserve requirements for banks.
Traders are still trying to assess the impact of Japan's earthquake and tsunami disaster.
"It seems iron ore prices will not be able to pick up significantly right now as mills and traders still see no obvious signals in increasing iron ore buying given weak steel demand," said an iron ore trader in northern China.
The Steel Index's 62 percent iron ore benchmark .IO62-CNI=SI dropped 0.5 percent to $163.80 a tonne, including freight, on Monday, after two days of gains.
The index, based on spot transactions in China, had lost about 15 percent since hitting record highs in mid-February before regaining some ground last Thursday.
Prices of forward swaps <0#sgxios:> also retreated, with second-quarter prices down after recent gains.
Sam Walsh, Rio Tinto's Iron Ore division chief, told an industry conference in Perth that a softening of iron ore prices was due to liquidity tightening in China.(Editing by Ed Lane)
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China is the world's biggest steel producer and consumer and traders usually look to the direction in Chinese steel prices when deciding whether or not to buy iron ore, the key material in making steel.
The most traded rebar contract for October delivery on the Shanghai Futures Exchange was up a modest 0.3 percent at 4,669 yuan a tonne by the midday break, after falling to as low as 4,627 yuan earlier, its weakest since Nov. 17.
A number of Chinese iron ore traders have remained worried about steel prices and demand in the short term, and are thus reluctant to make forward bookings with suppliers.
Some of them are also facing difficulty securing bank loans to be able to build their raw material stockpiles after a series of moves by China to tighten liquidity, including another increase in cash reserve requirements for banks.
Traders are still trying to assess the impact of Japan's earthquake and tsunami disaster.
"It seems iron ore prices will not be able to pick up significantly right now as mills and traders still see no obvious signals in increasing iron ore buying given weak steel demand," said an iron ore trader in northern China.
The Steel Index's 62 percent iron ore benchmark .IO62-CNI=SI dropped 0.5 percent to $163.80 a tonne, including freight, on Monday, after two days of gains.
The index, based on spot transactions in China, had lost about 15 percent since hitting record highs in mid-February before regaining some ground last Thursday.
Prices of forward swaps <0#sgxios:> also retreated, with second-quarter prices down after recent gains.
Sam Walsh, Rio Tinto's Iron Ore division chief, told an industry conference in Perth that a softening of iron ore prices was due to liquidity tightening in China.(Editing by Ed Lane)
Wednesday, February 2, 2011
Macroeconomic indicators - China PMI drops to 5 month low of 53 pct in January
Wednesday, 02 Feb 2011
Xinhua quoted the China Federation of Logistics and Purchasing said China manufacturing sector purchasing managers index fell to a five month low of 52.9% in January compared with 53.9% in December.
The January figure means the benchmark index for economic expansion has kept above the boom and bust line of 50% for 23 consecutive months.
Analysts said authorities' moves to cool prices prompted the decline.
Mr Liu Tiejun Haitong Securities analyst attributed the decline to the government tightening measures and the seasonal effect of the Spring Festival or the Chinese Lunar New Year which falls on Thursday.
The PMI is a package of indexes that measure the performance of the country's manufacturing sector.Tag:benchmark index, manufacturing sector, purchase managers index (sourced from Xinhua)
Xinhua quoted the China Federation of Logistics and Purchasing said China manufacturing sector purchasing managers index fell to a five month low of 52.9% in January compared with 53.9% in December.
The January figure means the benchmark index for economic expansion has kept above the boom and bust line of 50% for 23 consecutive months.
Analysts said authorities' moves to cool prices prompted the decline.
Mr Liu Tiejun Haitong Securities analyst attributed the decline to the government tightening measures and the seasonal effect of the Spring Festival or the Chinese Lunar New Year which falls on Thursday.
The PMI is a package of indexes that measure the performance of the country's manufacturing sector.Tag:benchmark index, manufacturing sector, purchase managers index (sourced from Xinhua)
Tuesday, February 1, 2011
Australia commodity price index surges in Jan - RBA
SYDNEY Feb 1, 2011 (Reuters)
The Reserve Bank of Australia's (RBA) index of commodity prices surged 4.5 percent in January, from December, to reach a fresh record high as rising iron ore and coal prices augured well for export earnings.
That followed an upwardly revised increase of 4.3 percent in December. The index was up a massive 49 percent in special drawing right (SDR) terms, compared to January last year. The index reading of 133.0 far surpassed the 2008 peak of 119.5.
In Australian dollar terms the index jumped by 4.9 percent in January and was up 35 percent for the year. The index also hit a record high in U.S. dollar terms, to be up 47 percent on January last year.
The largest contributor to the rise in January were increases in the estimated prices of iron ore and coking coal, reflecting the movement to higher contract prices in the first quarter and strength in spot prices in the month.
The RBA noted the strength in prices was broad based, with only gold and sugar prices falling in the month.
Much of the increase for all of 2010 reflected huge price increases for iron ore and coal, Australia's two biggest export earners. That has boosted Australia's terms of trade, lifting profits, investment, employment and tax receipts. (Reporting by Wayne Cole, reuters)
The Reserve Bank of Australia's (RBA) index of commodity prices surged 4.5 percent in January, from December, to reach a fresh record high as rising iron ore and coal prices augured well for export earnings.
That followed an upwardly revised increase of 4.3 percent in December. The index was up a massive 49 percent in special drawing right (SDR) terms, compared to January last year. The index reading of 133.0 far surpassed the 2008 peak of 119.5.
In Australian dollar terms the index jumped by 4.9 percent in January and was up 35 percent for the year. The index also hit a record high in U.S. dollar terms, to be up 47 percent on January last year.
The largest contributor to the rise in January were increases in the estimated prices of iron ore and coking coal, reflecting the movement to higher contract prices in the first quarter and strength in spot prices in the month.
The RBA noted the strength in prices was broad based, with only gold and sugar prices falling in the month.
Much of the increase for all of 2010 reflected huge price increases for iron ore and coal, Australia's two biggest export earners. That has boosted Australia's terms of trade, lifting profits, investment, employment and tax receipts. (Reporting by Wayne Cole, reuters)
Monday, January 31, 2011
Shanghai rebar hits record as iron ore stays highPublished 7:03 PM, 31 Jan 201
Monday, 31 Jan 2011, Reuters
SINGAPORE - Shanghai steel rebar futures jumped to a record on Monday as raw material iron ore prices hovered near all-time highs on tight supplies.
The most active rebar contract on the Shanghai Futures Exchange for October delivery rose 1.3 per cent to 5,104 yuan per tonne at 1556 AEDT, just off a peak of 5,110 yuan.
It was the second time that the contract chalked up a record level in less than a week, after rising as high as 5,097 yuan on January 25.
"It's the result of surging prices of raw materials over the past few months and iron ore and coking coal prices are still on the upswing," analyst at BOC International Futures Jiang Zhiwei said.
Fewer cargoes out of Brazil and India pushed spot iron ore prices to near $US200 a tonne earlier this month, a record last seen in February 2008.
Tight supplies will likely continue to support prices even with top buyer China off the market during its February 2 to 8 Spring Festival holiday.
"There is less chance of prices going down because of the supply situation but there's a cap on the rise with the Chinese out of the market," a Singapore-based trader who deals with Indian iron ore said.
"The market is very slow and I think the Indian miners are concentrating on building up their stocks before they offer it out."
Indian ore with 63.5 per cent iron ore content was quoted at $US190 to $US192 a tonne, cost and freight delivered to China, on Monday, steady from Friday, Chinese consultancy Mysteel said.
The three major iron ore indexes, based on Chinese spot prices and used by global miners to decide rates for quarterly contracts, stayed near record highs on Friday.
The Platts 62 per cent iron ore index slipped 25 cents to $US186.75 a tonne, just off the record $US187 touched on Thursday.
The Steel Index 62 per cent benchmark edged down 30 cents to $US185.30, but still near its all-time high of $US185.70 reached on January 21.
Metal Bulletin's 62 per cent gauge dipped 11 cents to $US183.76, a tad off the record $US184.43 hit last week.
Indian futures
Two Indian commodity exchanges on Saturday launched the world's first iron ore futures contracts, just days after securing regulatory approval.
But analysts say the contracts are unlikely to be considered global benchmarks anytime soon unless liquidity picks up strongly and with trading limited to domestic players.
For more on India's iron ore futures, click:
At 1530 AEDT, the March 62 per cent fines on the Multi Commodity Exchange (MCX) were up 0.7 per cent at 7,545 rupees ($US164.31) per tonne, while the March 62 per cent fines on the Indian Commodity Exchange (ICEX) rose 0.3 per cent to 8,094 rupees a tonne, according to the bourses' websites.
The price quoted on ICEX is based on cost and freight delivered to China, while the quote on MCX is on a free on board basis.
ICEX is part-owned by state-run MMTC Ltd which is the biggest Indian trader of iron ore, and MCX is the country's largest commodity exchange by turnover.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
The Singapore Exchange clears the bulk of global swaps and prices were mostly mixed on Friday.
The February contract slipped a dollar to $US179.50 a tonne and March gained $US1.50 to $US174.25.
SINGAPORE - Shanghai steel rebar futures jumped to a record on Monday as raw material iron ore prices hovered near all-time highs on tight supplies.
The most active rebar contract on the Shanghai Futures Exchange for October delivery rose 1.3 per cent to 5,104 yuan per tonne at 1556 AEDT, just off a peak of 5,110 yuan.
It was the second time that the contract chalked up a record level in less than a week, after rising as high as 5,097 yuan on January 25.
"It's the result of surging prices of raw materials over the past few months and iron ore and coking coal prices are still on the upswing," analyst at BOC International Futures Jiang Zhiwei said.
Fewer cargoes out of Brazil and India pushed spot iron ore prices to near $US200 a tonne earlier this month, a record last seen in February 2008.
Tight supplies will likely continue to support prices even with top buyer China off the market during its February 2 to 8 Spring Festival holiday.
"There is less chance of prices going down because of the supply situation but there's a cap on the rise with the Chinese out of the market," a Singapore-based trader who deals with Indian iron ore said.
"The market is very slow and I think the Indian miners are concentrating on building up their stocks before they offer it out."
Indian ore with 63.5 per cent iron ore content was quoted at $US190 to $US192 a tonne, cost and freight delivered to China, on Monday, steady from Friday, Chinese consultancy Mysteel said.
The three major iron ore indexes, based on Chinese spot prices and used by global miners to decide rates for quarterly contracts, stayed near record highs on Friday.
The Platts 62 per cent iron ore index slipped 25 cents to $US186.75 a tonne, just off the record $US187 touched on Thursday.
The Steel Index 62 per cent benchmark edged down 30 cents to $US185.30, but still near its all-time high of $US185.70 reached on January 21.
Metal Bulletin's 62 per cent gauge dipped 11 cents to $US183.76, a tad off the record $US184.43 hit last week.
Indian futures
Two Indian commodity exchanges on Saturday launched the world's first iron ore futures contracts, just days after securing regulatory approval.
But analysts say the contracts are unlikely to be considered global benchmarks anytime soon unless liquidity picks up strongly and with trading limited to domestic players.
For more on India's iron ore futures, click:
At 1530 AEDT, the March 62 per cent fines on the Multi Commodity Exchange (MCX) were up 0.7 per cent at 7,545 rupees ($US164.31) per tonne, while the March 62 per cent fines on the Indian Commodity Exchange (ICEX) rose 0.3 per cent to 8,094 rupees a tonne, according to the bourses' websites.
The price quoted on ICEX is based on cost and freight delivered to China, while the quote on MCX is on a free on board basis.
ICEX is part-owned by state-run MMTC Ltd which is the biggest Indian trader of iron ore, and MCX is the country's largest commodity exchange by turnover.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
The Singapore Exchange clears the bulk of global swaps and prices were mostly mixed on Friday.
The February contract slipped a dollar to $US179.50 a tonne and March gained $US1.50 to $US174.25.
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