Iron ore price, page-2932

Chinese Future have fallen across the board after lunch and finished in the "negative", except Gold/Silver/Coke/Coking coal/Coal and few others.

Metals fell 2-3%, Chemicals down 4%. Overall the Future finished down 1.33%, ended the 5 week winning streak.

IO Future was down pretty much all week, falling from 597 yuan on Monday to 534.5 today, over 10%. The analyst in China basically saying in late September, high grade IO from Australia will increase, hence ease the supply pressure for high grade IO. Spot IO are down 5-10 yuan in the afternoon.

FMG has increased 56.3% IO discount from 32% to 35% for September Contracts.

Record IO import probably the biggest contributor to today's IO Future fall. According to Mysteel, IO port inventory has decrease from 134.19MT to 133.90MT, only down 0.29MT.

Steel Mills continue to produce steels at record pace, even thought Steel inventory have increase in recent 3 weeks, inventory at Steel Mills has fallen in last 3 weeks, basically mean Steels have moved from Steel Mills to Traders, and yet to be sold to downstream demands, so expect steel prices to remain firm at least until mid November.

IO price have shown "weakness" this week as prices approach US$80, with record IO imports, IOP probably will consolidate around US$70. IOP shouldn't get too much of a pullback, demand for IO have been quite good, but IOP need to stay low enough so we don't get "Non-mainstream" IO imports like we had earlier in the year.

Tangshan Billet ended the day 3830 yuan, up 20 yuan today.

DYOR.

Frank.