AIRLINK 86.21 Decreased By ▼ -0.99 (-1.14%)
BOP 4.97 Decreased By ▼ -0.05 (-1%)
CNERGY 4.08 Decreased By ▼ -0.01 (-0.24%)
DFML 37.22 Decreased By ▼ -0.68 (-1.79%)
DGKC 91.20 Decreased By ▼ -2.68 (-2.85%)
FCCL 22.99 Decreased By ▼ -0.78 (-3.28%)
FFBL 33.74 Increased By ▲ 1.07 (3.28%)
FFL 9.19 Decreased By ▼ -0.06 (-0.65%)
GGL 10.05 Increased By ▲ 0.02 (0.2%)
HASCOL 6.25 Decreased By ▼ -0.29 (-4.43%)
HBL 126.25 Increased By ▲ 4.33 (3.55%)
HUBC 158.29 Increased By ▲ 12.64 (8.68%)
HUMNL 11.08 Increased By ▲ 0.58 (5.52%)
KEL 4.64 Decreased By ▼ -0.10 (-2.11%)
KOSM 4.09 Decreased By ▼ -0.10 (-2.39%)
MLCF 38.25 Decreased By ▼ -0.55 (-1.42%)
OGDC 133.40 Decreased By ▼ -1.61 (-1.19%)
PAEL 25.40 Increased By ▲ 0.32 (1.28%)
PIBTL 6.22 Decreased By ▼ -0.05 (-0.8%)
PPL 119.25 Decreased By ▼ -0.43 (-0.36%)
PRL 24.58 Increased By ▲ 0.48 (1.99%)
PTC 12.28 Increased By ▲ 0.06 (0.49%)
SEARL 59.32 Decreased By ▼ -0.48 (-0.8%)
SNGP 65.60 Increased By ▲ 0.60 (0.92%)
SSGC 9.87 Decreased By ▼ -0.18 (-1.79%)
TELE 7.85 Decreased By ▼ -0.02 (-0.25%)
TPLP 9.49 Decreased By ▼ -0.25 (-2.57%)
TRG 63.80 Decreased By ▼ -0.50 (-0.78%)
UNITY 27.26 Increased By ▲ 0.21 (0.78%)
WTL 1.28 Decreased By ▼ -0.04 (-3.03%)
BR100 8,341 Increased By 31.1 (0.37%)
BR30 26,457 Increased By 506.8 (1.95%)
KSE100 78,810 Increased By 9 (0.01%)
KSE30 25,474 Increased By 35.6 (0.14%)

Dalian iron ore futures climbed to a 10-month high on Monday, as shrinking stocks of the steelmaking ingredient at Chinese ports added fuel to a rally spurred by optimism around demand in the world’s top steel producer.

Coking coal, another steelmaking input, also extended gains to hit a six-week peak following a flurry of recent news about China’s resolve to stimulate its slowing economy and moves to ease its COVID-19 restrictions.

Benchmark September iron ore on China’s Dalian Commodity Exchange rose as much as 3.2% to 948 yuan ($142.57) a tonne, its loftiest since the first week of August.

On the Singapore Exchange, the most-traded July contract advanced 1.7% to $145.05 a tonne before retreating modestly. Dalian coking coal rallied as much as 5.2%, while coke jumped 2.8%.

“Fundamentals look relatively strong,” said Atilla Widnell, managing director at Navigate Commodities in Singapore, citing slower arrivals of imported iron ore in China and a week-on-week decline of 1.1 million tonnes in Australian and Brazilian shipments.

China iron ore futures extend gains on demand hopes

“Slower arrivals and a continuation of robust blast furnace capacity utilisation rates and daily offtakes should result in portside iron ore inventories depleting by a further 2.0-3.0 million tonnes this week.”

Portside iron ore inventory in China shrank to 132 million tonnes last week, the lowest since late September, SteelHome consultancy data showed.

Benchmark 62%-grade iron ore’s spot price for the China-bound material stood at $142.50 a tonne on June 2, boosting its 2022 gains to 23%, according to SteelHome data.

With COVID-19 cases falling in Beijing, the Chinese capital will further relax curbs by allowing indoor dining. “If China can sustain this level of ‘openness’, we anticipate this will release pent-up and ravenous national steel demand,” Widnell said.

Construction steel rebar on the Shanghai Futures Exchange gained 1.2%, hot-rolled coil added 1%, and stainless steel rose 0.9%.

Comments

Comments are closed.