China's iron ore futures fall after supply worries

Dalian iron ore has fallen as much as 4.4 % to 3-week lows, as Brazil’s February daily exports outpaced shipments

Chinese iron ore futures have hit their lowest in more than three weeks on Tuesday, after news that Brazil’s average daily exports in February 2018 outpaced shipments.

Brazil’s daily exports reached 1.4 million tonnes of iron ore per business day, despite last month’s mine disaster.

According to Secex data, Brazil’s amount exceeded the average daily shipments of the mineral by almost 8%.

Brazil’s exports paced slower compared with January, with an average of 1.5 million tones of iron ore per day being shipped.

The most-traded iron ore contract on the Dalian Commodity Exchange fell as much as 4.4% in early trade on Tuesday, falling an average of 11 % since it’s the highest trade in February.

Hot rolled coil edged 0.1 % higher while coking coal was down 0.4% and spot iron ore for delivery to China inched up.

Construction steel rebar futures were also lower, with the most-active rebar contract on the Shanghai Futures Exchange falling as much as 1.4 %.

Vale mining burst tragedy

The Vale mining tragedy saw a tailings dam burst at a Vale iron ore mining facility last month, killing 300 people. Due to the incident, Vale halted all facilities using similar upstream tailings, putting 10% of its output offline.

The incident attracted growing concerns of a major global disruption in production and supply.

Earlier in the month, Chinese traders had led to the exchange hitting its daily limit, seeing the commodity trade as high as the exchange would allow, with the price not able to go higher.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Trade on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.