5/11/2021 6:49:35 AM GMT
Asia Market Update: Asia generally tracks declines on Wall St, HK TECH index drops over 4%; China released 2020 census; Japan earnings remain in focus; Colonial Pipeline situation continues to develop.
General trend
- Asian markets extended losses after the mostly lower opens; US equity FUTs continued to move lower led by Nasdaq.
- Tech has lagged in Asia after the Nasdaq declined by over 2.5%.
- Mining shares trade generally lower after gains on prior session; China Iron Ore FUTs drop over 3.5%.
- Nikkei dropped >3% after opening lower by ~1% [Panasonic drops over 6% after issuing results/guidance, weighs on Topix Electric Appliances index; Softbank Group declines over 6%].
Iron ore resets its record high for a second straight session
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The price of iron ore lifted to a fresh record on Friday amid a continuing surge in demand for the steel-making material in China, a widening rift between Australia and Beijing, and a bullish overall commodities outlook.
S&P Global Platts said its IODEX for 62 per cent iron ore fines rose $US10.10 or 5 per cent to $US212.75 a tonne, easily surpassing the record set the previous day.
The spot price quoted by Fastmarkets MB also surged, rising $US10.37 or 5.1 per cent to $US212.25 a tonne.
China’s demand for steel continues to defy expectations.
CHINA STEEL SCRAP: Steelmakers look to restock after long holiday Chinese steelmakers looking to replenish steel scrap stocks after returning from their new year holiday on Thursday February 18, have raised bid prices for both domestic and imported material, sources told Fastmarkets. On the first day back after the holiday, a Shandong mill raised its tender for heavy scrap by 50 yuan per tonne on Thursday to 3,050 ($472) yuan per tonne delivered, excluding value-added tax, a trader in eastern China said.
Chinese bid prices for bulk imports of heavy recycled material (HS) supplied from Japan also increased on Thursday.
Fastmarkets’ daily price assessment for steel scrap, heavy recycled steel materials, cfr China was $465-470 per tonne on Thursday, up $5 per tonne from the previous assessment on February 10 - prior to the Chinese New Year break - of $460-465 per tonne cfr.
Chinese steelmakers looking to replenish steel scrap stocks after returning from their new year holiday on Thursday February 18 have raised bid prices for both domestic and imported material, sources told Fastmarkets.
China-Australia relations: breaking free of dependency on Australian iron ore would take years, but where is China looking?
China has interests in overseas mines with tonnes of iron ore reserves, yet most of it remains inaccessible amid bureaucratic wrangling and limited capital
Using more scrap steel is also an option for diversifying China’s iron ore supply, but this too is not without its hurdles and limitations