Money Iron ore markets remain choppy and directionless

15:16  16 april  2018
15:16  16 april  2018 Source:   Business Insider Australia

Iron ore prices are suddenly charging higher

  Iron ore prices are suddenly charging higher Iron ore spot and futures prices jumped on Wednesday, underpinned by strong Chinese property data and a modest liquidity boost from the People's Bank of China.And with futures charging higher again in overnight trade, it looks like there may be a lot more upside to come.

Iron ore spot markets remain choppy and largely directionless , continuing the pattern seen throughout the month of October.

The gain came despite downbeat commentary from BHP Billiton on Monday with Australia’s second-largest iron ore producer suggesting that prices were likely to push lower in the period ahead due to “well-telegraphed” new supply from Australia and Brazil arriving about to hit the market .

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Iron ore spot markets remain choppy and directionless, continuing the price action seen since the start of April.

According to Metal Bulletin, the price for benchmark 62% fines rose 0.8% to $64.96 a tonne on Friday, partially reversing the losses seen in the previous two sessions.

It has traded in a less than $2 range since the end of March.

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Like the benchmark, modest gains were recorded across the grades.

Ore with 65% Fe content added 0.6% to close at $82.20 a tonne. 58% fines rose by a smaller 0.3% to settle at $37.87 a tonne.

The gains in spot markets followed another sharp reversal in Chinese rebar and iron ore futures, this time to the upside.

Iron ore explodes higher, recording its largest gain of 2018

  Iron ore explodes higher, recording its largest gain of 2018 Iron ore just recorded its largest gain so far in 2018. Surging crude oil prices and demand hopes were cited as catalysts behind the move. Futures weakened in overnight trade, hinting that the sudden bout of buying enthusiasm might not last.But the early signs suggest the parabolic-like move won't last.

Iron ore spot markets remain choppy and largely directionless , continuing the pattern seen throughout the month of October.

Iron ore spot markets remain choppy and directionless . And with futures markets treading water overnight, that trend looks set to continue today.

After closing Thursday's night session at 3,387 yuan, the October 2018 rebar contract in Shanghai rallied 1.6% to 3,452 yuan a tonne.

That strength flowed through to iron ore futures in Dalian which finished up 1.2% at 453.5 yuan, above Thursday's night session close of 446.5 yuan a tonne.

The reversal in futures followed the release of Chinese trade data for March, including news that iron ore imports were almost unchanged in the March quarter compared to the same period a year earlier.

China's General Administration of Customs said imports totaled 85.79 million tonnes last month, leaving total imports over the quarter at 271 million tonnes.

Others put the rebound in futures down to signs that US trade policy might be starting to soften with President Donald Trump asking advisers to reexamine the merits of joining the Trans-Pacific Partnership (TPP).

Whatever the reason behind the push higher in futures, it was not enough to see those gains sustained in overnight trade on Friday with both rebar and iron ore contracts logging modest losses.

Here's the final scoreboard.

SHFE Rebar¥3,438,0.47%
DCE Iron Ore¥450.00,0.00%

Given overnight moves in futures haven't been the best lead indicator of late, the modest pullback offers few clues as to whether spot markets will follow suit today.

Trade in commodity futures will resume at 11am AEDT.

Glenn Dyer’s TV Ratings .
The Commonwealth Games have come out on top once again, to nobody's surprise.In AFL markets, Seven’s Front Bar (408,000 nationally, 126,000 in Melbourne) went up against The AFL Footy Show on Nine with Eddie McGuire (396,000 nationally and 131,000 in Melbourne). Now let’s see what happens when we have clean air. Gogglebox Australia did well for Ten with 781,000.

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