Money: Iron ore markets are about to wake from their slumber - PressFrom - Australia
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MoneyIron ore markets are about to wake from their slumber

00:30  12 february  2019
00:30  12 february  2019 Source:   businessinsider.com.au

'Prices could lift well north of $US100 a tonne': The CBA explains why the iron ore rally may have further to run

'Prices could lift well north of $US100 a tonne': The CBA explains why the iron ore rally may have further to run Iron ore prices surged last week following another mining disaster in Brazil. The Commonwealth Bank says supply disruptions to seaborne markets could see the benchmark price spike above $US100 a tonne in the near-term.

Iron ore spot markets were near static on Monday due to a public holiday in China. The price for 62%, 65% and 58% fines was unchanged at .49, and .19 a tonne respectively, according to Metal Bulletin. Trade in Chinese futures will resume today at 11 am AEST. The most actively traded iron ore

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Iron ore markets are about to wake from their slumber© Getty John Moore/Getty Images

    Iron ore spot markets look set to spring back to life today as Chinese participants return following Lunar New Year Celebrations.

    On Friday, the price for 62% and 58% fines stood at $85.53 and $63.74 a tonne respectively, unchanged from where they settled on February 1.

    After two days of no movement, 65% fines bucked the trend, lifting by 2.5% to $103.30 a tonne, leaving it at the highest level since March 2017.

    Iron ore markets are about to wake from their slumber© BI

    For the first time since February 1, Chinese iron ore futures traded in Dalian will resume trade on Monday at midday AEDT.

    The May 2019 contract last transacted at 621.5 yuan a tonne. Given the moves seen in Singaporean futures last week, further gains are likely to be seen in Chinese futures today.

    Both Credit Suisse and the Commonwealth Bank believe the benchmark price for 62% fines could soon exceed $100 a tonne given the combination of disruptions to seaborne supply, restocking demand ahead of the spring construction season and already low iron ore port inventories in China.

    Iron ore futures are climbing towards new highs.
    Iron ore spot markets finished mixed on Friday. Chinese economic data released during the session was mixed. CPI and PPI were very weak while new loan growth was strong, pointing to renewed efforts from policymakers to stabilise economic activity.

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