OREANDA-NEWS. SGX Iron Ore Monthly Report - May 2016.

SGX iron ore derivative volumes totaled 132.2 mil mt in May, while open interest averaged 212.8 mil mt during the month. Our suite of ferrous products provides market participants with a wide range of trading strategies and risk management solutions.

62% Fe spot iron ore averaged $54.49 per tonne in May, down 8.5% from April (and down 9.8% y/y), amidst falling steel prices, rising iron ore inventory and policy uncertainties. Steelmaker margins gave up most of their gains since mid-March. In the event of a sustained reversion to negative margins, Chinese steel output could start to trend lower through Q3 2016.

China’s manufacturing PMI showed slight moderation in May, though still showing signs of a general (albeit quite uneven) stabilisation. Uncertainties over near-term policy direction and the trade-off between growth versus reform may keep market volatility high in the near-term.

More than 1,000 industry participants from 20 countries came to Singapore for the fourth annual Singapore Iron Ore Week during May.