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Imbalance of supply and demand! Iron ore futures prices hit a record high

Today, nonferrous, black futures rose across the board, rebar main closed trading, reported 6012 yuan per ton. As a raw material of steel, iron ore futures main contract price is also trading, and set a record high.
Today, before the opening of the domestic futures market, the main contract of Singapore iron ore index futures once rose the limit, and the intraday price once reached 226.55 US dollars / ton, a record high. The international iron ore 62% Proctor index rose 29% to 212.75 US dollars per ton on May 7 from 164.50 US dollars per ton at the beginning of the year. As a global resource, iron ore is fully connected both at home and abroad. The sharp rise of Proctor’s price has spread to the domestic market, making the domestic port spot price (61% jinbuba powder in Qingdao port, the same below) and futures price go up. On May 7, the domestic port spot price and iron ore futures price were 1399 yuan / T (converted into domestic futures standard price 1562.54 yuan / T) and 1205.5 yuan / T respectively, Compared with the beginning of the year, it increased by 32% and 21% respectively.
It is precisely because of the iron ore futures that domestic steel mills have the means to hedge against the rise of raw materials. Some experts said that from the actual operation of the market last year, under the background of rising ore prices and global pricing based on overseas proctor’s prices, referring to the long-term discount to proctor’s and spot futures prices, using futures to hedge risks will become an effective way to improve the iron ore pricing mechanism and protect the interests of the iron and steel industry.
However, iron ore is not the only raw material for iron and steel, scrap is also one of the important raw materials. At present, domestic iron and steel futures still need to be further improved. As the saying goes, “if you want to do good work, you must first sharpen the tools”. The futures market should constantly improve the construction of futures variety system, so as to better serve the entity enterprises.

Post time: Jun-28-2021