HR futures: Trying to form a bottom

On Aug. 14, the chairman of the world’s largest steel producer, China’s Baowu Steel Group, had some alarming news. He told staff at the firm’s mid-year meeting that conditions in China are like a “harsh winter” that will be “longer, colder and more difficult to endure than expected.” Ferrous markets reacted aggressively over the next three trading sessions sending the rolling 2nd month iron ore future down to an intraday low of $91.80/per metric ton (mt), its lowest since November 2022. Six trading sessions later, iron ore was back above $100/mt.

Rolling 2nd month SGX iron ore future $/mt