Strong macro expectations shored up market confidence, iron ore prices may swing widely

Extreme drought has lowered river levels in East Kalimantan, disrupting transportation operations for some coal producers. Data from Indonesia’s meteorological agency showed that East Kalimantan received almost no rainfall in August. To prevent barges from running aground, local producers have been forced to reduce their coal loads. A local port official said that barges normally capable of carrying 7,000 tonnes of coal are currently limited to approximately 5,500 tonnes, representing a reduction of 1,500 tonnes, or about 21.4%, per trip. Some barges continue to face difficulties travelling upstream despite carrying reduced loads. The industry group noted that the decline in carrying capacity per trip will require more voyages and raise logistics costs.

철광석 선물은 오늘 약세를 보였다. DCE 최근월물 I2701 계약은 전 거래일 대비 1.11% 하락한 RMB 714.0/mt에 정산됐다.