Latest Update in the China Coke Market

Inventories of rebar across Chinese steelmakers and social warehouses stood at 8.35 million mt as of January 28, up 15.7% from a week ago. From the time dimension of the lunar calendar, stocks are up 33.9% from a year earlier.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 28, 2021

The average operating rate of blast furnaces at Chinese steel mills dipped 0.7 percentage point from the previous week to 86.8% as of January 28. This was 1.6 percentage points lower than the same period last year.

The Australian iron ore miner Fortescue Metals Group released a production report today. The report showed that iron ore shipments in the second quarter increased by 4.7% from the first quarter, benefiting from the surge in Chinese demand.

Recently, the National Development and Reform Commission issued the "Catalogue of Encouraged Industries in the Western Region (2020 Edition)", which was formulated to promote formation of a new pattern for development of the western region and promote industrial structure adjustment and development of advantageous industries in the western region.

The physical port stock prices inched down slightly as DCE iron ore futures market vibrated vulnerably, and PBF was closed at 1130-1135yuan/mt. Total transactions turned to be tepid as some mills remained relatively cautious in purchasing.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 27, 2021

The US dollar fell across the board as riskier currencies found a firmer footing on Tuesday, a day after worries over vaccine rollouts and the outlook for US fiscal stimulus boosted demand for safe havens.