The national development and Reform Commission announced on the 17th that recently, the multi sectoral research group fully understood the changes of Qingdao Port International Co.Ltd(601298) iron ore inventory and held a special meeting to remind and warn some iron ore trading enterprises to release excessive inventory and restore to a reasonable level as soon as possible.
As of the afternoon closing of China futures market on February 17, the main iron ore contract fell 3.79% to 684.5 yuan / ton, with a cumulative decline of about 18% this week. Meanwhile, Singapore iron ore futures fell sharply
Singapore iron ore futures price
“There is still room for further decline in iron ore.” Liu Huifeng, senior researcher of ferrous metals in Donghai futures, told the Shanghai Securities News. Industry insiders said that all the regulatory rumors about “forging iron” have been implemented, and the recent regulatory pressure will continue.
regulators warned some iron ore trading enterprises
According to the news of the national development and Reform Commission on February 17, in view of the recent abnormal situation that the supply and demand of the iron ore market is generally stable but the price rises sharply, the price department of the national development and Reform Commission and the price supervision and Competition Bureau of the State Administration of market Supervision recently went to Qingdao to carry out joint supervision and research. The research team fully understood the changes of Qingdao Port International Co.Ltd(601298) iron ore inventory and retrieved the list of enterprises with rapid inventory growth.
The research group held a special meeting to remind and warn some iron ore trading enterprises, ask to release excessive inventory and restore to a reasonable level as soon as possible, provide details such as recent changes in iron ore inventory, specific time, quantity and price of purchase and sale, and cooperate with the verification of whether there are illegal acts such as hoarding and raising prices.
It is reported that the national development and Reform Commission and the State Administration of market supervision are highly concerned about the changes in iron ore prices and will take further effective measures with relevant departments to ensure the stable operation of iron ore prices; We will strengthen market supervision and resolutely and severely punish illegal acts such as fabricating and disseminating price increase information, hoarding and hoarding, and bid up prices.
all the regulatory rumors of “forging iron” have landed
As early as February 15, it was rumored that in order to ensure the stable operation of the iron ore market, several goalkeepers held “special meetings on reminders and warnings” in Beijing and Qingdao, and convened a number of well-known enterprises in the industry to participate in the meeting.
Among them, the enterprises involved in the Beijing conference include Minmetals Group, CITIC metals, AVIC international mineral resources, Xiamen Jianfa, Jidong development, Xiamen Itg Group Corp.Ltd(600755) , Wuchan Zhongda Group Co.Ltd(600704) , Zheshang Development Group Co.Ltd(000906) , Xiamen Xiangyu Co.Ltd(600057) , etc; Enterprises involved in the Qingdao conference include Ruigang Union, Tangshan Kairong, Tangshan haichi, Ningbo Gujian, Rizhao JINGMAO, Glencore, mercuria, Trafigura, Itochu, Cargill, etc.
Liu Huifeng said that the rumored participating enterprises are all participants in the field of China’s iron ore bulk commodity trade. From the current point of view, the above rumored meetings are not only implemented, but also announced in time. It can be seen that the supervision of “striking iron” is real and fast, and it is expected that the high pressure of supervision will continue in the near future.
Wang Guoqing, director of Lange Iron and Steel Research Center, said that the rise in iron ore prices since November last year has seriously deviated from the fundamentals of the industry. According to the monitoring data of Lange steel cloud business platform, on February 10, the Platts iron ore price index reached 153.8 US dollars / ton, up 66.6 US dollars / ton or 76.4% from the low of 87.2 US dollars / ton on November 18 last year. In the same period, the comprehensive steel price index of Lange Iron and steel increased by only 4.4%, which shows that the iron ore price seriously deviates from the market trend of the steel industry, and there is something unreasonable under the strong rise.
“This round of sharp rise in iron ore prices is carried out when China’s steel demand is in the seasonal off-season, production restrictions are still sustainable, and port iron ore inventories remain high. The fundamentals of the iron ore market can not form a support for the rapid rise in iron ore prices, so the speculation factors of this round of rise should not be underestimated.” Wang Guoqing said.
there is still room for further decline in iron ore prices
With the implementation of the “heavy fist” of supervision one after another, the price of iron ore has also fallen again and again. According to Xiben Shinkansen, the price of Australian iron ore fines imported on February 17 Qingdao Port International Co.Ltd(601298) was 855 yuan / ton, down 9% in the past week.
Liu Huifeng said that the resumption of production of steel mills, replenishment of storage in winter and phased restriction of foreign ore delivery due to the influence of the rainy season have jointly promoted the sharp rebound of iron ore prices since late November last year. But recently, with the periodic weakening of fundamentals and the influence of policy regulation factors, iron ore prices have fallen sharply.
“We believe that there is still room for further decline in iron ore prices in the near future, mainly due to the phased weakening of supply and demand, the strengthening of policy regulation, the risk that the demand for steel is less than expected, and the overall high valuation level of ore at present.” Liu Huifeng said.
Wang Guoqing said that the recent supervision, investigation and warning of relevant market parties by the national development and Reform Commission will help all parties in the market treat correctly, effectively promote the stability of the iron ore market and maintain normal order, and the iron ore price will return rationally.
