- Iron ore spot markets fell on Monday, snapping a four-session winning streak in the process.
- Data released on Monday showed Chinese rebar and iron ore inventories fell last week.
- Chinese rebar and bulk commodity futures were near-unchanged in overnight trade.
Iron ore spot markets fell on Monday.
According to Metal Bulletin, the price for benchmark 62% fines fell 1% to $66.75 a tonne, snapping a four-session winning streak in the process.
It had risen 0.9% on Friday.
Lower grades also softened with 58% fines losing 0.6% to $38.84 a tonne.
Higher grades managed to buck the boarder trend with 65% fines adding 0.6% to settle at $88.40 a tonne.
The mixed performance came despite the release of data that would normally act to support prices.
According to Reuters, Chinese daily crude steel output averaged 2.53 million tonnes in mid-April, just shy of the 2.56 million tonnes average seen in April which was the highest level since May 2014.
Despite strong production levels, rebar inventories held by Chinese traders continued to decline last week, falling to 5.04 million tonnes, according to data from Steelhome consultancy, taking the draw from mid-March to nearly 50%.
Reflecting strong steel demand and output, iron ore port inventories also fell, coming in at 161.03 million tonne, according to Steelhome, pulling back from the record of 161.98 million tonnes struck a week earlier.
Despite the bullish data set, Chinese commodity futures largely overlooked the news.
Rebar futures in Shanghai finished Monday’s day session at 3,803 yuan, down from the multi-month highs struck late last week but off the low of 3,755 yuan seen earlier in the day.
Dalian iron ore futures mirrored that performance, closing the session near unchanged at 470 yuan.
As seen in the scoreboard below, there was very little movement upon those levels in overnight trade on Monday.
SHFE Rebar ¥3,811 , 0.66%
DCE Iron Ore ¥470.50 , 0.32%
DCE Coking Coal ¥1,249.00 , 0.64%
DCE Coke ¥2,073.50 , 0.66%
Chinese commodity markets will reopen at 11am AEST.
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