Market seeking direction but steel demand supportive

摘要

Since returning from the Golden Week holidays, buyers have been slightly bearish about the prospects for the iron ore market. The S&P Global Platts 62% Fe benchmark (IODEX) initially rallied when trading resumed on Oct. 9, reaching $125.85/mt CFR China. But it has drifted down since to around the $119/mt level. This is still above the $100-$110/mt range where 54% of respondents in the Platts Iron Ore & Steel Outlook expected prices to average in Q4. Chinese finished steel prices and margins have rebounded strongly since the holiday, which will help to support iron ore prices. Domestic hot-rolled coil margins were $35.10/mt and domestic rebar margins were $37.48/mt on Oct. 19, the highest level for both since early. Platts steel margins use a three-week "lag" for iron ore prices.