U.S. dollar adjustments help iron ore warmer

Main iron ore 1501 contract has been listed since January, affected by downstream steel rebar, oscillation down, at the end of September once to the bottom of the history of 537 yuan / ton, the decline rate reached 37.3%. After the National Day, iron ore prices rebounded slightly.

China's economy is still recovering

September HSBC China Purchasing Managers Index (PMI) was 50.2, unchanged from August. In addition, HSBC China's new order PMI was 51.5, slightly higher than August's 51.3. The PMI indicator shows that although China's economic recovery is slow, it still continues.

In addition, from January to August, the accumulative growth rate of total new fixed assets completed by the whole society was 24.40%, an increase of 3.1 percentage points from July and showing an upward trend.

Relaxation of the first suite to determine the standard to stimulate real estate consumption

As the main consumer terminal of the coal coke steel industry chain, the recession in the real estate industry has brought tremendous pressure on iron ore. However, recently the central bank loosened the standards for first-home suites and raised the area of ​​new housing starts, bringing a certain boost to the iron ore industry that has fallen to historical lows.

China's steel exports hit a record high in September

In September, China exported 8.52 million tons of steel, a record high, a year-on-year increase of 73.2%. On the one hand, the lower base year-on-year results in a significant year-on-year increase in steel exports in September. On the other hand, the average price of China's steel exports fell at an accelerated rate in September, which has a clear advantage in international competition and further stimulated steel exports. The average price of steel exports during the month was US$739/ton, which was a decrease of 4.9% from the previous quarter and a decrease of 10.7% from the same period of last year.

U.S. dollar fell favorably to commodity markets

The U.S. dollar index has risen strongly for 12 consecutive weeks since the end of July. After a sharp fall in the past two weeks, the upward trend has been suspended. This week is likely to continue to adjust, which is good for the commodity market.

Port inventory remains high

Since the fourth quarter of 2013, the inventories of mines imported from the port have continued to climb, and reached the highest level in history in June this year, reaching approximately 120 million tons. In September, China imported 85.69 million tons of iron ore, the highest level in history, with a year-on-year increase of 13.56%. However, we also noticed that after the third quarter, due to a slight recovery in the construction of downstream real estate, which led to the consumption of iron ore, the year-on-year growth of the port's imported mine inventory slowed down.