UNITED KINGDOM August 12 2015 9:40 AM
LONDON (Scrap Register): July recorded some of the largest-ever one day moves in The Steel Index (TSI) benchmark 62% Fe iron ore index as prices came under renewed pressure. The monthly average of the index was down over 17% compared with June.
The latest Chinese import data showed a 6% increase in the country’s June imports of the raw material. Within this, Australian iron ore, accounting for two thirds, increased 8% m-o-m.
Chaos in China’s volatile equities markets fed through into the “real economy” as well as affecting steel markets, largely through the effect market turbulence had on commodities futures (including those for steel and iron ore). The China manufacturing PMI by Caixin and the official government both signalled contraction in output again.
The iron ore derivatives market saw another record month of trade, with one day alone seeing more than 15 million tons cleared through the Singapore Exchange (SGX). The total volume across SGX and the CME Group in July exceeded 124 million tons, 35.5% higher than last month.