Commodity tracker: 5 charts to watch this week

S&P Global Platts editors’ pick of unfolding commodities trends. This week, record iron ore prices are crushing Chinese steelmakers’ margins and Germany’s coal-fired generation is under intense pressure from gas and renewables, while in European wholesale gas markets, Gazprom is registering ever-higher sales through its auction platform. Finally, OPEC is targeting a thorough rebalancing of the oil market, and we take a look at the latest moves in coffee prices. 1. Record iron ore prices could force Chinese mills to trim output   What’s happening? Spot iron ore prices reached their highest level since early 2014, hitting $126.35/mt CFR China for 62% Fe iron ore fines on July 3, before easing slightly. This is largely due to the supply outage in Brazil following Vale’s accident in January, and slower exports from Rio Tinto. S&P Global Market Intelligence has forecast a seaborne deficit of 36 million mt this year. Chinese producers of hot-rolled coil have struggled to pass these costs through to finished steel prices because of weak end-user segments, notably manufacturing. As a result, margins have been severely eroded with steelmakers at times producing below cost.  What’s next? With the iron ore shortage set to prevail this year and spot… continue reading

Continue reading Commodity tracker: 5 charts to watch this week. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply