Today, the ferrous market entered a phase of volatile adjustments as the market digested the expectations from the Central Economic Work Conference. Although follow-up news from the conference continued to emerge, such as details on the scale of the trade-in policies, and the upcoming moderately loose monetary policy, the stock market's downward adjustment has also influenced the futures market to some extent.
The spot iron ore prices, fell by Rmb10/ton, back to yesterday's levels. Rio Tinto today released the January discounts for low-grade iron ore: SP10 fines showed little change at 9.7%, while the discounts for SP10L and RTXL slightly expanded. This indicates that Rio Tinto sees little change in the demand for low-grade fines, which is expected to decline during the Chinese New Year.
There have been no further positive releases from the Central Economic Work Conference, leading to weakened market sentiment. The iron ore price plunged during the night session, filling the previous Rmb792/ton gap and then continuing to fluctuate. The current market fundamentals remain relatively healthy, with the restocking of steel products lower than expected and steel mill profits showing a notable recovery recently. We expect iron ore prices to continue fluctuating upwards within the ascending channel.
©2024 iBlackmores® All Rights Reserved
