Iron Ore Affects Steel Coil Prices

In this period, the total global iron ore shipments were 28.635 million tons, a decrease of 2.963 million tons from the previous month, and the total iron ore shipments from Australia and Brazil were 23.537 million tons, a decrease of 2.888 million tons from the previous month. Australia's shipments were 18.732 million tons, an increase of 470,000 tons from the previous month, of which Australia's shipments to China were 15.384 million tons, an increase of 510,000 tons from the previous month. Brazil's shipments were 4.805 million tons, a decrease of 3.358 million tons from the previous month.
In addition, the total amount of iron ore arriving at 45 ports in China was 28.764 million tons, an increase of 10.378 million tons from the previous month; the total amount of iron ore arriving at six northern ports was 14.314 million tons, an increase of 4.655 million tons from the previous month.
This week, although the global iron ore shipments fell by another 2.963 million tons, the weekly volume of 28.63 million tons is still not low. Moreover, in late March, overseas mines will have a new round of end-of-season rush, so high shipments will continue; in terms of port arrivals, due to the continuous increase in shipments after the impact of the "hurricane", the arrivals were concentrated at the port this week, reaching 28.764 million tons per week, which is at an absolutely high level. It is difficult for ports to digest in the short term. Therefore, port inventories this week are bound to accumulate significantly. In the short term, high iron ore supply will become the norm, especially under the low inventory strategy of steel mills, it is difficult for port warehouses to transfer to factory warehouses, and the continued accumulation of port warehouses will inevitably have a greater suppressive effect on ore prices.
Overall, with the continuous downward trend of the market, the double coke has broken, and the closing price of rebar has also hit a new low in the past six months. The market mentality has further weakened, and futures and spot traders have increased their low-price shipments. At present, after the news of production control faded, the black series lacked new upward momentum, especially on the raw material side. The fundamentals of coke and iron ore do not support price stabilization. The downward shift of cost support drove steel prices down, boosting the recovery of pessimism. On the market, the main force of futures screw continued to enter the market with short funds, and the price broke down. The hourly K-line quickly crossed down, and the downward trend was slightly smooth. There was no stabilization signal in the short term. It is expected that the spot price of aluminum-zinc steel coil will be weak this week, with a range of 0-20 yuan.
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