CHINA September 14 2015 9:55 AM
LONDON (Scrap Register): Despite a turbulent macro-environment and many negative headlines coming out of China, August saw firmer prices for spot iron ore amid reduced production and low port inventory, said The Steel Index.
The Steel Index (TSI) benchmark price for 62% Fe fines averaged $55.28 a dry metric tonne CFR Tianjin port, up 7.2% on the July average.
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Supply continues to grow: China’s imports of iron ore rose again above 85 million tonnes in July, customs data showed. This was 4% above the level last year.
Meanwhile more recent data showed exports from Australia’s Port Hedland soaring to a fresh all time high in August.
Despite weak manufacturing data coming out of China, as well as the widely-reported stock market plunge, the more critical property markets remained relatively well-supported. China’s authorities took a number of measures to shore up the economy.
Liquidity in the off-shore iron ore derivatives market continued to grow as open interest climbed to 179 million tonnes on the Singapore Exchange (SGX) on August 28, a new record, despite the usual seasonal fall-off in overall cleared volumes.
Over 90 million tons of swaps, options and futures were cleared across SGX and the CME, up more than 150% year-on-year.
(This article compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to email@example.com)