Today, the black futures sector continued to fall, iron ore closed down 6.5%, refresh five-month low, intraday decline of 7.3%. Rebar and “peerless coke” have also declined.

At the end of the closing, rebar fell 3.7%, a three-month low; coking coal fell about 3%, coke fell more than 2%; hot rolled over 3%, Shanghai lead, Shanghai copper, glass, Shanghai nickel, %, Zheng coal, Shanghai gold, eggs fell. Manganese silicon, Zheng cotton closed up more than 1%.
See Chi Chi Institute of the analysis that the iron ore is mainly due to the collapse of the port stocks are high:

Iron ore futures plummeted mainly from high port stocks. From the inventory structure, steel mills began in mid-March “throwing storage” action; specifically reflected in their stockpile in the port stocks continued to rise, while the factory stockpile of stocks fell sharply. On the other hand, traders’ inventory size has not changed much since the cold spot market in March.

Steel mills to seek in the port to sell its iron ore stocks, making the current market, the size of effective trade resources may be beyond people’s imagination. With about 61% of the trade mineral resources, there are about 80 million tons of trade mines on the market today. After the steel mills join the “seller” camp, the actual tradeable mineral resources on the market may even exceed 100 million tons.

Steel home earlier data also show that as of March 24, the country’s 45 major ports imported iron ore stocks climbed to 1325 million tons, the highest level since the record. Since August 2016, the port iron ore stocks have remained at 100 million tons above the high.

According to Reuters, these iron ore can produce 95 million tons of steel, enough to build 12,960 Eiffel Tower!

China’s steel companies are currently favored by high-grade iron ore, some ports in order to manage the limited storage space, and even refused to carry low-grade iron ore vessels into the port, there are some ports are through the abandoned building into Warehouse to increase storage space.

Wang Yingsheng, deputy secretary general of the China Iron and Steel Industry Association, at the end of last month to accept the Shanghai Securities News interview, has reminded investors concerned about the high risk of iron ore stocks, “many ports in the north there is no place to save, but imports in a large number of imports.

For the recent performance of the black commodity futures, Founder interim futures pointed out that due to pre-procurement of powder ore costs are too high, in order to reduce the cost of raw materials to improve profits, steel mills recent low-cost purchase of resources increased, but the downstream raw material shipments did not improve , Prices continue to fall sharply, so the black line into panic selling stage.

In addition, the industry said that a small number of small traders to increase the cost of capital costs, selling their own low-priced spot operations, drag the spot price appears cliff down.