Recent Gains Unwound Further, China Inventories Continue To Climb

Iron ore continues to unwind recent gains. The active SGX contract last near $108.7/ton, down a further 1.5% so far today, after Friday's near 3% dip. We are back to early July levels, while late June lows were just under $102/ton.

• The mood in iron ore is being matched by onshore China steel benchmarks with both steel rebar and hot-rolled coil off more than 1% so far today. Copper is down 0.62% on a CMX basis so far today. China iron ore inventories maintained their uptrend to the end of last week, hitting fresh 2year highs.
• Equity benchmarks are struggling as well, the CSI 300 off more than 0.40% at this stage. Recent lows recent near 3400. The property sub index is off a further 2.7% today.
• Looking ahead we have China inflation and trade figures this week, along with new loans/aggregate credit figures. Next week the 3rd plenum meeting will be in focus.