June 06, 2024 03:39 GMT
Seeing Some Stability After +10% Drop In The Past Week
IRON ORE
Metals bulletEM BulletHomepagemarkets-real-timeCommoditiesBulletMarketsEmerging Market NewsForeign Exchange Bullets
The active iron ore SGX contract sits slightly above recent lows. We were last around $108.00/ton, up around 1.20%, after falling a cumulative 10.6% in the past 5 trading sessions. Late May highs rested above $123/ton.
- Renewed downside in iron ore has broadly coincided with fresh weakness in China property related stocks (a Bloomberg gauge is off 20% from May highs).
- Despite signs the recent easing measures is seeing improved activity in some of the major cities, aggregate sales are still coming from depressed levels and liquidity pressures persist for developers.
- Inventory levels for iron ore are stuck at multi year highs, while copper inventories trended higher in May. This is raising concerns around the strength of underlying demand in China. Note we get May trade figures tomorrow, where commodity import volumes are likely to be eyed.
- Outside of recent lows bear $106/ton, round figure support at $100/ton may be eyed. YTD lows rest at $94.55/bbl from early April.
159 words