IOS: high volume but more selling pressure

A high volume day on the Iron Ore Swap in which the market again came under increased selling pressure, with SHFE & DCE futures both finishing around 1% down and the swap down a buck from last night’s close. The Asian morning session saw some big volume trades printing particularly in November trading in size from $79.50 down to $79 where it appeared well supported. Q1 traded down to $78.50 and Q2 traded as low as $76 but again saw support there with Cal15 going through at $77.25. Overall nearly 5m tonnes traded on SGX AsiaClear. The slump in Chinese steel prices showed no signs of abating. Billet prices in the Tangshan region slumped RMB50/tonne after the sustained losses over the past few days. Buyers of spot iron ore took a step back as sentiment deteriorated and the few physical transactions taking place were at lower levels. Platt’s finished down $2.25 to $79.75 and TSI down $1.50 to $80.