DCE gains RMB 19 on-day to RMB 764 a tonne today, rather tame as compared to the hitting the upper trading limit on Tuesday.
The overall rally is less aggressive as compared to Tuesday, and often the DCE’s upward movement faces some corrections which offer trade participants lot of entry points and selling opportunities on intra-day high.
The rebar futures run off steams today to post a slight dip of RMB 7 to RMB 3,776 a tonne at the closing, while Tangshan billet prices dipped by RMB 10 on-day to RMB 3,500 a tonne.
Delay of Rio Tinto’s iron ore shipments
Since Tuesday, the rumour mills had been spinning that Rio Tinto might have encountered some delay in their shipments.
Apparently, the grapevine gossip had some truth to it, as the miner had delayed its July and August iron ore shipments of Pilbara Blend fines and Pilbara Blend lump to some of its term buyers.
However, Rio did not disclose the reason for the decline on the term contracts but will provide second quarter production updates at 16 July 2019.
Some trade sources believed that there will not be no impact on the shipment volume but just delay in loading periods.
Mixed market sentiments
After the rally on Tuesday, some market participants expect some slight corrections, while some chose to sell on high for profit-takings.
However, doubts soon set in as steel prices decrease which wavered market confidence on the strength of steel market.
Furthermore, some participants reckoned that the Rio’s delay on term contract had already been priced in the market on Tuesday, leaving less upsides for the market on Wednesday.