China iron ore extends rally as Rio cuts Pilbara shipment outlook

reuters.com Price,  Iron Ore,  futures 2020-02-19 10:50:04

Iron ore futures in China rose more than 2% on February 18 after miner Rio Tinto lowered its shipment forecast for the steelmaking raw material from Australia's Pilbara region citing damage to its infrastructure due to the tropical cyclone Damien.


The Anglo-Australian miner , which was the world's top iron ore producer last year, dislodging Brazil's Vale SA, said it will take time for the Pilbara operations to return to normal after the cyclone hit the country's west coast last week.


Rio now expects Pilbara shipments in 2020 to be between 324 million tonnes and 334 million tonnes, lower than its previous outlook of 330 million tonnes to 343 million tonnes.


The Dalian Commodity Exchange's most-traded iron ore contract, with May expiry, rose as much as 2.3% to 645 yuan/t ($92.37/t), its highest since January 23 this year, extending its rally into a sixth consecutive session.


Another major iron ore miner, BHP Group, said supply disruptions have lent support to iron ore prices and that it has not yet seen a major impact on its business from the coronavirus outbreak in top steel producer and iron ore buyer China.


Sparking iron ore's price rally, Vale last week scaled down its first-quarter production outlook following heavy rain in Brazil that hampered its operations.


Spot prices for iron ore also stretched gains to fresh peaks in more than three weeks, with the benchmark 62% grade climbing to $90/t on February 17, data showed.


Iron ore futures on the Singapore Exchange climbed 0.7% to $87.50/t.


"Iron ore imports exhibit weaker Chinese New Year seasonality and have shown a significant decrease in average daily imports between January and February to date, down 260ktd," said French data firm Kpler, which tracks commodity flows, in a note.


Weak downstream steel demand, which has pushed inventories higher, work stoppages and transport restrictions in China to contain the epidemic, kept iron ore's rally in check.


(Writing by Alex Guo  Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Jan-Feb coal shipment via railway drops 6.2% on yr 2020-04-01

China's coal shipments via railway were 370 million tonnes in January-February 2020, a year-on-year decrease of 6.2%, according to data released by the National Development and Reform Commission on Ma

2 China's import coking coal market soft amid steel market pressure 2020-04-01

Chinese import coking coal market stayed soft as domestic steel industry still faced great pressure in digesting high stockpiles and recovering profits. Mongolian coking coal prices were

3 China's thermal coal prices fall further after Top miner's Apr contract price 2020-04-01

Spot prices of thermal coal further dropped at China's northern transfer ports on the heels of a sharp decline in monthly-term contract prices of top miner CHN Energy for April shipments.

4 Chinese dull demand still caps Indonesian thermal coal settlements 2020-04-01

A demand lull in the world's largest coal consumer China is still capping settlements of Indonesian thermal coal, although it remains the top buyer after Indonesia's second largest buyer India adopted

5 Webinar recap: How Covid-19 impacts China's economy and coal industry 2020-04-01

Although Covid-19 epidemic is largely contained within China, the fallout has profoundly impacted the country's economy and its trade of coal and other commodities. As the epidemic is still spreadi

6 China's Mar steel PMI recovers to 42.2 as coronavirus impact eases 2020-03-31

China's Purchasing Managers' Index (PMI) for steel sector recovered to 42.2 in March from 36.6 a month earlier, data from the CFLP Steel Logistics Professional Committee (CSLPC) showed on March 31,

7 China Coal Daily Track (Mar 31) 2020-03-31

Thermal coal Production area The pithead market didn't see much movement at the beginning of this week. Miners remained under downward pressures as demand from inland buyers had almost no improv

8 Futures slump hit China's spot thermal coal market 2020-03-31

China's spot thermal coal market fell again at the beginning of this week after a slump in the futures market. The Zhengzhou Commodity Exchange main contract 2009 decreased by 14.0 yuan/t

9 Chinese met coal pulls back despite steady Q2 term contract prices 2020-03-31

Chinese metallurgical coal market witnessed another round of quick fallbacks in a large variety of coal grades at the start of this week, although top coal miners have held the second-quarter term con

10 Indonesian Bayan's frozen operations stir different impact evaluations 2020-03-31

Indonesia's PT Bayan Resources said on March 27 that three subsidiaries in East Kalimantan have suspended mining operations effective March 25, in a quick response to Indonesian government's previous

Most Read Articles

1 Large offer-bid spread curbs Indonesian thermal coal trade in China 2020-03-27

The gap was still large between offers and bids of Indonesian thermal coal in the Chinese seaborne import market, as participants were hard to capture the market direction under the Covid-19 pandemic,

2 Inner Mongolia Jan-Feb raw coal output logs rare 14.1% drop 2020-03-27

Inner Mongolia, top coal production hub in China, logged a steep year-on-year decline of 14.1% in raw coal production in the first two months this year, according to official data, primarily affected

3 China's State Grid 2019 profit hits 6-year low 2020-03-27

State Grid Corp. of China said its profit totaled 77 billion yuan in 2019, down 1.26% from a year ago, hitting a new low since 2014, the company said in a reported dated March 24. The cou

4 China's spot thermal coal market further sapping on weak sentiment 2020-03-27

China's spot thermal coal market continued sapping near late this week, given battered market sentiment and tapered buying appetite from end users. Following 16 straight sessions of fallb

5 China's planned coal power capacity surged 46% in 2019 2020-03-27

China's planned coal-fired power capacity last year increased for the first time since Beijing imposed restrictions on new coal plant proposals and permits in 2016, a joint study by four international

6 Spot Australian coking coal further slides in China; decline may not ease quickly 2020-03-27

Spot Australian premium coking coal further softened in China, a response to coke producers' tepid restocking as their profit margins dived close to zero. Settlement prices of spot Austra

7 Weekly global coal market news summary (Mar 23-Mar 27) 2020-03-27

Large offer-bid spread curbs Indonesian thermal coal trade in China The gap was still large between offers and bids of Indonesian thermal coal in the Chinese seaborne import market, as particip

8 Indonesian Bayan's frozen operations stir different impact evaluations 2020-03-31

Indonesia's PT Bayan Resources said on March 27 that three subsidiaries in East Kalimantan have suspended mining operations effective March 25, in a quick response to Indonesian government's previous

9 47.4 GW coal fired power projects cancelled in India in 2019, Report 2020-03-27

A staggering 47.4 GW coal fired power projects at different stages were cancelled in India in 2019 reducing total under development coal capacity to 66 GW. The data was compiled in a repo

10 China's steel supply surplus may linger in short run 2020-03-27

China's steel market is likely to continue dealing with supply glut in the short run, even if rebooted infrastructure and manufacturing activity could boost demand, said experts. In spite

Scan to download sxcoal.com mobile APP

X