- Iron ore spot markets finished mixed on Wednesday.
- The benchmark price tumbled 1.5%, masking flat-to-higher outcomes elsewhere.
- Chinese rebar and iron ore futures finished mixed in overnight trade, providing no clear signal as to what direction spot markets may travel today.
Iron ore spot markets continued to slide on Wednesday, adding to the steep losses seen on Tuesday.
According to Metal Bulletin, the price for benchmark 62% fines tumbled 1.4% to $65.49 a tonne, extending its slide over the past two sessions to 4.4%.
It now sits at the lowest level since June 4.
However, while the benchmark fell heavily again, that wasn’t reflective of moves seen in lower and higher grades.
The price for 58% fines fell by a solitary one cent to $38.61 a tonne. 65% fines bucked the broader trend, jumping 1.7% to $88.30 a tonne.
Higher grades may have benefited from a rebound in Chinese steel prices on Wednesday.
Rebar futures in Shanghai finished at 3,817 yuan, up from Tuesday’s night session close of 3,787 yuan.
That helped iron ore, coking coal and coke futures in Dalian climb off earlier lows, finishing trade at 453, 1,209 and 2,123.5 yuan respectively.
Speculation that the People’s Bank of China (PBoC) may cut the reserve requirement ratio (RRR) for lenders, allowing more cash to flow into China’s financial system, may have also been a factor behind the modest recovery.
Despite a small decline in rebar futures, seen in the scoreboard below, the bounce in bulk commodities continued in overnight trade.
SHFE Rebar ¥3,807 , 0.50%
DCE Iron Ore ¥454.50 , 0.55%
DCE Coking Coal ¥1,212.00 , 0.66%
DCE Coke ¥2,143.50 , 1.88%
Chinese commodity futures will resume trade at 11am AEST.