With US sanctions on Iran looming, markets will be looking for cues on the crude oil supply outlook.
Iron ore prices peaked on strong restock demand from Chinese steel mills. High margins are spurring active production at the mills and market players expressed bullish sentiment.
Philippine corn buyers are importing feed wheat cargoes due to corn shortages in the domestic market as well as facing corn import restrictions.
Australian 5,500 NAR thermal coal cargoes have started to turn up in markets like Egypt and Europe due to China's import restrictions.
The capesize freight market in the Asia Pacific and Atlantic regions were bullish as markets report healthy cargo volumes going forward.
This week, competition for Iranian oil alternatives intensify, CFR North China iron ore prices reached new highs and thermal coal prices are expected to continue their upward trend.
But first in oil, the US sanctions will snap back on November 5th and Asian buyers are looking to secure supplies from places like Saudi Arabia, Bahrain, Abu Dhabi, Kuwait, and Qatar.
So here's our social media question of the week : With Iran sanctions looming, will prices head north or south ? Do share your thoughts on Twitter with the hashtag PlattsMM.
Meanwhile, all eyes will be on Saudi oil minister Khalid al-Falih and other key oil industry leaders when they speak at the India Energy Forum in New Delhi this week. Markets will be looking for cues on the oil supply outlook as the US sanctions draws near.
In metals,seaborne medium and high grade iron ore prices on CFR North China basis, reached new highs on October 9th.
Prices peaked on strong restock demand from Chinese steel mills ahead of the winter season. 62%-Fe Iron Ore Index crossed the $70 dry metric tonne level for the first time since March 2018. High margins are spurring active production at the mills and most market players are optimistic about strong iron ore demand until end of October.
In agriculture, Philippines corn buyers are importing feed wheat cargoes due to corn shortages in the domestic market as well as facing corn import restrictions. Meanwhile, Russian exports are slowing due to stricter quality checks and the widening spread between Australian feed wheat and APW.
And in thermal coal, Chinese market players are watching for any changes to import restrictions as domestic thermal coal prices are expected to continue rising. Demand for lower grade Indonesian coal is expected to remain strong from both India and China but Indian markets may be inactive due to the approaching Deepavali celebrations.
Meanwhile, some Australian 5,500 NAR thermal coal cargoes have started to turn up in markets like Egypt and Europe.
In shipping, the capesize freight market in the Asia pacific and Atlantic regions moved rally week on week , sources expressed a positive sentiment and added that most of the paper traders were bullish too, as they felt cargoes to be healthy going forward.
Do join us on Oct 17th, at the dry bulk shipping forum where we will cover market trends and insights.
And that's it from Platts Market Movers, thanks for kicking off your Monday with us. Have a great week ahead!