SMM Reports 13.9% Daily Decline in Hot Rolled Coil Transactions Amid Market Uncertainty

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.

Os contratos futuros de minério de ferro foram negociados em baixa hoje. O contrato mais ativo da DCE, I2701, fechou a RMB 714,0/t, queda de 1,11% em relação ao dia de negociação anterior.