Wed Aug 10, 2011
* China July iron ore imports up 6.8 pct to 54.55 mln T
* Steel mills slow down purchases as worries on economy linger
* SMX plans to launch iron ore futures on Friday
By Ruby Lian and Jacqueline Wong, Reuters
SHANGHAI, Aug 10 (Reuters) - Shanghai rebar futures rose on Wednesday after the U.S. Federal Reserve pledged to keep interest rates near zero for at least two years, stemming a global equity rout, but gains were limited as investors remain wary on the long-term outlook.
The most active rebar futures for January on the Shanghai Futures Exchange SRBc6 rebounded to a high of 4,819 yuan ($749) per tonne, up 1.1 percent from the previous close, after hitting its weakest since March 24 on Tuesday. The contract ended 0.52 percent higher at 4,790 yuan per tonne.
"The panic is calming down after the Fed promised to maintain low interest rates until 2013, but the extent of the rebound will still need to be watched as investors remain concerned on the U.S. and European economic outlook," said Jay Zhang, an analyst with Everbright Futures in Shanghai.
Global stock and commodities markets had been on a downward spiral starting late last week triggered by fears about the U.S. economy and Europe's debt crisis compounded by the shock of an historic downgrade of the U.S. credit rating.
Analysts said there was still a lot of uncertainty regarding the Fed's power to stimulate the economy with rates already so low, while China's top economic planner expecting the United States to launch a new round of quantitative monetary easing, which may fuel global price pressures.
IRON ORE DEALS SLOW
Spot prices of iron ore fell $1 a tonne on Wednesday after steelmakers in China, the world's top iron ore buyer, slowed down purchases.
"Transactions have been weaker since early August after iron ore prices rose quickly, and the worries over the gloomy global economy have also slowed down buying," said an iron ore trader in coastal Shandong province.
"At least our company has managed to minimise stocks except for bookings with long-term suppliers."
Quotes for Indian 63.5/63 iron ore fell $1 to $184-$186 per tonne, including freight, on Wednesday, while offers for 62-grade Newman fines from Australia posted a similar fall to $180-182 per tonne, industry consultancy Umetal said.
China's imports of iron ore rose 6.8 percent to 54.55 million tonnes in July, with steelmakers' purchases taking the figure to its highest point in four months, customs data showed on Wednesday.
China's daily crude steel output fell 4.3 percent to 1.913 million tonnes in July from the record hit in the previous month, as flat steel producers contracted output in the face of weaker demand over the summer.
Total steel output in the world's top steel-producing country for the first seven months rose 10.3 percent to 410.36 tonnes from a year earlier, suggesting demand for iron ore remains strong.
Key global iron ore indexes, used by global miners to settle contract prices, fell on Tuesday, reflecting weaker spot deals in China.
The Steel Index's 62-percent iron ore reference price .IO62-CNI=SI slipped 30 cents to $177.8 per tonne, while Metal Bulletin's Iron Ore Index dipped 18 cents to $177.59 per tonne.
The Platts 62-percent index IODBZ00-PLT stood unchanged at $177.5 per tonne.
Singapore Exchange-cleared iron ore swaps <0#SGXIOS:> fell across the board on Tuesday, reflecting investors' continued worries over the European and U.S. downturn.
The volume of iron ore swaps cleared globally rose to an all-time high of more than 4 million tonnes in July, valued at more than $700 million. The bulk of that, or 3.92 million tonnes, was cleared by the Singapore Exchange.
The Singapore Mercantile Exchange will launch its iron ore futures contract on Friday, the second in the world after India launched the world's first in January, providing another tool for steel mills and iron ore producers to hedge the steelmaking raw material.
The contract, open to global investors and settled in U.S. dollars, will be cash-settled against Metal Bulletin's iron ore index .IO62-CNO=MB. ($1 = 6.431 Chinese yuan)
* China July iron ore imports up 6.8 pct to 54.55 mln T
* Steel mills slow down purchases as worries on economy linger
* SMX plans to launch iron ore futures on Friday
By Ruby Lian and Jacqueline Wong, Reuters
SHANGHAI, Aug 10 (Reuters) - Shanghai rebar futures rose on Wednesday after the U.S. Federal Reserve pledged to keep interest rates near zero for at least two years, stemming a global equity rout, but gains were limited as investors remain wary on the long-term outlook.
The most active rebar futures for January on the Shanghai Futures Exchange SRBc6 rebounded to a high of 4,819 yuan ($749) per tonne, up 1.1 percent from the previous close, after hitting its weakest since March 24 on Tuesday. The contract ended 0.52 percent higher at 4,790 yuan per tonne.
"The panic is calming down after the Fed promised to maintain low interest rates until 2013, but the extent of the rebound will still need to be watched as investors remain concerned on the U.S. and European economic outlook," said Jay Zhang, an analyst with Everbright Futures in Shanghai.
Global stock and commodities markets had been on a downward spiral starting late last week triggered by fears about the U.S. economy and Europe's debt crisis compounded by the shock of an historic downgrade of the U.S. credit rating.
Analysts said there was still a lot of uncertainty regarding the Fed's power to stimulate the economy with rates already so low, while China's top economic planner expecting the United States to launch a new round of quantitative monetary easing, which may fuel global price pressures.
IRON ORE DEALS SLOW
Spot prices of iron ore fell $1 a tonne on Wednesday after steelmakers in China, the world's top iron ore buyer, slowed down purchases.
"Transactions have been weaker since early August after iron ore prices rose quickly, and the worries over the gloomy global economy have also slowed down buying," said an iron ore trader in coastal Shandong province.
"At least our company has managed to minimise stocks except for bookings with long-term suppliers."
Quotes for Indian 63.5/63 iron ore fell $1 to $184-$186 per tonne, including freight, on Wednesday, while offers for 62-grade Newman fines from Australia posted a similar fall to $180-182 per tonne, industry consultancy Umetal said.
China's imports of iron ore rose 6.8 percent to 54.55 million tonnes in July, with steelmakers' purchases taking the figure to its highest point in four months, customs data showed on Wednesday.
China's daily crude steel output fell 4.3 percent to 1.913 million tonnes in July from the record hit in the previous month, as flat steel producers contracted output in the face of weaker demand over the summer.
Total steel output in the world's top steel-producing country for the first seven months rose 10.3 percent to 410.36 tonnes from a year earlier, suggesting demand for iron ore remains strong.
Key global iron ore indexes, used by global miners to settle contract prices, fell on Tuesday, reflecting weaker spot deals in China.
The Steel Index's 62-percent iron ore reference price .IO62-CNI=SI slipped 30 cents to $177.8 per tonne, while Metal Bulletin's Iron Ore Index dipped 18 cents to $177.59 per tonne.
The Platts 62-percent index IODBZ00-PLT stood unchanged at $177.5 per tonne.
Singapore Exchange-cleared iron ore swaps <0#SGXIOS:> fell across the board on Tuesday, reflecting investors' continued worries over the European and U.S. downturn.
The volume of iron ore swaps cleared globally rose to an all-time high of more than 4 million tonnes in July, valued at more than $700 million. The bulk of that, or 3.92 million tonnes, was cleared by the Singapore Exchange.
The Singapore Mercantile Exchange will launch its iron ore futures contract on Friday, the second in the world after India launched the world's first in January, providing another tool for steel mills and iron ore producers to hedge the steelmaking raw material.
The contract, open to global investors and settled in U.S. dollars, will be cash-settled against Metal Bulletin's iron ore index .IO62-CNO=MB. ($1 = 6.431 Chinese yuan)
Posts
