AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Iron ore slips as China steel prices fall, but set for weekly gains

  • "The fundamentals are still positive for steel prices," Sinosteel Futures analysts said in a note, citing robust downstream domestic demand.
Published April 9, 2021

Asia's iron ore benchmarks slipped on Friday as steel futures in Shanghai stretched their losses, but the raw material was headed for weekly gains on expectations that demand will hold up despite China's current steel production restrictions.

China, the world's top steel producer and supplier, is rolling out new policies and drafting fresh ones focusing on tighter environmental control that limits mills' production capacities.

Such structural changes in China's steel sector are likely to just prompt a shift to high-grade and less pollutive iron ore, analysts said, allaying concerns of a significant drop in overall demand.

The most-traded September iron ore on China's Dalian Commodity Exchange ended morning trade down 0.5% at 978.50 yuan ($149.34) a tonne, but was up 0.2% for the week.

May iron ore on the Singapore Exchange slipped 0.5% to $164.40 a tonne, after a five-day rally.

Spot iron ore in China was steady at a four-week high of $170.50 a tonne on Thursday, according to SteelHome consultancy.

"A pause in the rally of steel prices failed to scupper iron ore's recent rebound," ANZ commodity strategists said in a note, referring to the steel-making raw material's recent gains.

Chinese steel futures extended a pullback from Wednesday's record peaks, with construction steel rebar on the Shanghai Futures Exchange down 1%. Hot-rolled coil also slipped 1%.

Both rebar and hot-rolled coil, however, are this year's top gainers so far in China's ferrous metal complex, outshining iron ore.

"The fundamentals are still positive for steel prices," Sinosteel Futures analysts said in a note, citing robust downstream domestic demand.

As of Thursday, 69 of the 126 blast furnaces in China's top steelmaking city of Tangshan were either undergoing maintenance or being idled, with the overall capacity utilisation rate at 57.83%, according to Mysteel consultancy's latest weekly survey.

Both Dalian coking coal and coke edged up 0.2%. Shanghai stainless steel climbed 0.6%.

Comments

Comments are closed.