STEEL
Steel market remained under pressure in July, where prices fluctuated across a range of markets and regions. Steel prices were held off from major changes due to summer lull and participants awaited for clearer market direction.
IRON ORE
Sentiment for underlying demand in China attempted to boost in July due to more positive macroeconomic data and some loosening of credit restrictions. However, iron ore prices remained under pressure, having spent in a tight zone below the $100 mark.
COAL
July showed slight recovery in seaborne coking coal prices into Asia but it was not a sign of a fundamental pick-up in the market. The gap between offers and bids in the spot market appeared to have widened, which may stagnate any price climb in August.
STEEL
Steel prices remained under pressure in June, followed suit with the downfall for futures until a rebound towards the end of the month which suggested underlined sustainable economic development for China.
IRON ORE
Spot iron ore prices dipped below the support level of $90 in June, with some feeling a bottom-line had been reached at least for the short term, amid fears over swelling port stocks and financing issues still lurk in the background.
COAL
Bearish sentiment dominated the Asian seaborne hard coking coal spot market, which followed by the slump in steel and iron ore prices in June. Most participants continued to sit on the sidelines in anticipation of stronger cues, which will likely recur in July.
STEEL
May saw a further downside for steel prices, and June is expected to face another round of weakness. Steel mills are unlikely to cut production in the near future because falling raw materials prices have improved profit margins in China, which will likely continue into June.
IRON ORE
Steel prices once again slipped in May and caused a domino effect on the industry and pulled iron ore prices further down below support level, hitting a fresh low at 20-month low.The market looks poised for further losses amid a deepening glut that could start pushing high-cost producers out of the market.
COAL
Coking coal prices drifted on weak trading interest and fragile sentiment in May, as the market received mixed signals from the Chinese steel industry, amid concerns about lower costs and abundant supplies hurt trading sentiment.
Iron ore plunged more than 12% this year to 8-month low, on soft demand and fears of further declines in prices. This market risk losing more ground as global supply is currently growing much faster than appetite, amid tighter liquidity in the Chinese market.
China credit concerns and disappointing economic data continued to depress coking coal market as buyers await for price direction. Caution around slowing growth in emerging economies is also expected to put downward pressure on thermal coal prices in the near term.