Latest Update in the China Iron Ore Market

DCE iron ore futures continued to fluctuate in a day, main contract closed689.5. a decrease of 1.5% throughout the day 。The spot quotation in the morning almost kept steady.Most traders tended to be wait-and-see，and the purchasing number is small。

Yulin City held a special meeting on ensuring coal supply for Q4 on October 19, requiring main coal-producing regions such as Shanxi, Shaanxi, and Inner Mongolia to lower the market coal price by 100 yuan/mt on the existing basis. The meeting showed the determination of authorities to ensure supply and stabilise prices. 

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on October 22, 2021

SMM data showed that HRC stocks across social warehouses and steel makers fell 118,600 mt or 3.31% on the week, a decrease of 12.90% than a year ago, to 3.46 million mt in the week ended October 21.

In response to the recent hot events in the real estate industry, many Chinese regulatory agencies have recently intensively spoken out on different occasions.

According to SMM statistics, as of October 1, the regions that received the power rationing notices involved Heilongjiang, Jilin, Liaoning, Guangdong, Jiangsu, Zhejiang, Shandong, Anhui, Henan, Fujian, Ningxia, Qinghai, Inner Mongolia, Shanghai, etc.

The inventory of rebar across Chinese steel makers and social warehouses stood at 8.08 million mt as of October 21, down 204,500 mt or 2.5% from a week earlier. Stocks are down 1.99 million mt or 19.8% from a year earlier.

DCE iron ore futures has kept falling and drop largely in the afternoon，main contract closed 650.5，a decrease of 8.7% throughout the day.