Futures
September 12, 2013
Iron Ore and Scrap Futures
Written by John Packard
Iron Ore
The spot price is still $135/MT zone with the forward curve still in a healthy backwardation. Most expect Iron Ore to retrace, difference of opinion lies in whether it will see a big sell off or a modest one. The recent positive economic data out of China along with not terrible inventory levels at mills and more modest production rates have likely stalled any decline in Iron Ore as the market waits to see if this might be the beginning of a growth trend. However, rebar prices are declining at a time when demand should be decent and this has some worried for where rebar prices go in China so go all ferrous markets. This story should sort itself out in the pretty near future. Let’s Call Oct ’13 either side of $129.50/MT, Q4 ’13 either side of $127/MT, Q1 ’14 either side of $125.50/MT and Cal ’14 either side of $116.50/MT. Markets are all down about $0.50-1.00/MT in the week.
