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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
IRON ORE
The active iron ore contract on the SGX is testing multi month lows, last near $101.5/ton. This is just below late June lows. The next logical downside target is a test of the $100/ton level. The 20-day EMA sits back at $107/ton on the topside.
- Iron ore weakness is consistent with softer onshore steel prices. Both hot rolled coil and steel rebar futures are both off more than 1%. Rebar futures are back close to early April lows.
- The CSI 300 is off a little over 1% in the equity space, with equity sub indices tracking down for the third straight session. Yesterday's rate moves not doing much to boost sentiment at this stage.
- Broader metal prices have also been under pressure. The Bloomberg metals sub index off nearly 1.5% in Monday's session the 6th straight loss. The index is back to levels from early April.
- The chart below overlays this index against spot iron ore prices. Over supply (with copper inventories)/China demand concerns are weighing on broader sentiment in the complex.
Fig 1: Iron ore & Bloomberg Metals Sub Index
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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