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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
Iron ore prices remain on the back foot. The active contract in Singapore is back to the low $124/ton region, off a further 2.5%. This puts us back to lowest levels since Nov last year. Early Jan highs rested just above $140/ton.
- Weakness has been particularly pronounced since onshore China markets re-opened on Monday (we ended last Friday near $131.30/ton).
- As to the drivers of the move, familiar worries appear to be in play. Lack of demand from the property sector is a key factor highlighted from analysts, with still depressed sales activity in the new segment of the market evident during the LNY period.
- Sentiment hasn't been aided much by the larger than expected cut in the 5yr LPR (by 25bps) today, which should flow through to mortgage rates and aid housing/consumer sentiment all else equal. We are up from earlier lows for the session though ($123.20/ton).
- Note on Friday we get an update on China iron ore inventories.
Fig 1: Singapore Iron Ore
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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