AGL 6.80 Increased By ▲ 0.08 (1.19%)
ANL 9.22 Decreased By ▼ -0.53 (-5.44%)
AVN 74.20 Decreased By ▼ -1.30 (-1.72%)
BOP 5.43 Decreased By ▼ -0.01 (-0.18%)
CNERGY 4.89 Decreased By ▼ -0.06 (-1.21%)
EFERT 78.00 Decreased By ▼ -0.05 (-0.06%)
EPCL 54.70 Decreased By ▼ -0.70 (-1.26%)
FCCL 14.93 Decreased By ▼ -0.37 (-2.42%)
FFL 6.34 Decreased By ▼ -0.14 (-2.16%)
FLYNG 7.12 Decreased By ▼ -0.03 (-0.42%)
GGGL 10.56 Increased By ▲ 0.01 (0.09%)
GGL 16.43 Decreased By ▼ -0.12 (-0.73%)
GTECH 8.21 Decreased By ▼ -0.21 (-2.49%)
HUMNL 6.35 Decreased By ▼ -0.06 (-0.94%)
KEL 2.95 Decreased By ▼ -0.04 (-1.34%)
LOTCHEM 28.60 Decreased By ▼ -0.25 (-0.87%)
MLCF 27.80 Decreased By ▼ -0.50 (-1.77%)
OGDC 75.30 Decreased By ▼ -0.20 (-0.26%)
PAEL 15.80 Increased By ▲ 0.26 (1.67%)
PIBTL 5.60 Increased By ▲ 0.24 (4.48%)
PRL 17.22 Decreased By ▼ -0.10 (-0.58%)
SILK 1.06 Increased By ▲ 0.01 (0.95%)
TELE 10.30 Decreased By ▼ -0.20 (-1.9%)
TPL 8.00 No Change ▼ 0.00 (0%)
TPLP 20.80 No Change ▼ 0.00 (0%)
TREET 22.60 Decreased By ▼ -0.40 (-1.74%)
TRG 128.85 Increased By ▲ 6.15 (5.01%)
UNITY 22.50 Decreased By ▼ -0.08 (-0.35%)
WAVES 12.00 Increased By ▲ 0.70 (6.19%)
WTL 1.13 Decreased By ▼ -0.01 (-0.88%)
BR100 4,100 Decreased By -4 (-0.1%)
BR30 15,533 Increased By 64.6 (0.42%)
KSE100 41,129 Increased By 114.8 (0.28%)
KSE30 15,337 Increased By 24.6 (0.16%)
Follow us

MANILA: Iron ore futures extended their rally to a fifth session on Thursday, pushing the Singapore benchmark to a four-week high, bolstered by rebounding steel margins in China that have prompted some steel producers to restart blast furnaces. The most-traded iron ore, for September delivery, on China’s Dalian Commodity Exchange climbed 5.1% to 778 yuan ($115.28) a tonne, its strongest level since July 8.

September iron ore on the Singapore Exchange rose 4.7% to $117.70 a tonne, the highest since June 30. Twelve blast furnaces in China have resumed operations as margins improved, according to Chinese metals information provider SMM, although dozens remained shut. Chinese steel mills had reduced their output in recent weeks, putting some of their facilities under maintenance earlier than usual, as weak demand and low prices - attributed to COVID-19 lockdowns and bad weather - squeezed margins.

Iron ore and other steelmaking ingredients have now been supported by what analysts at Zhongzhou Futures said a “sharp recovery” of steel margins. Sentiment has also been buoyed by signs of an economic rebound in China, the world’s top steel producer and consumer, with industrial output and profits recovering in June. Construction steel rebar on the Shanghai Futures Exchange rose 3.2%, while hot-rolled coil advanced 2.8%. Stainless steel gained 0.7%.

Dalian coking coal climbed 5.6% and coke rose 4.6%. Analysts, however, warned of continued market volatility as COVID-19 curbs and China’s ailing property sector remain key concerns.

“Iron ore is still under pressure in the medium term,” Zhongzhou analysts said in a note. A district in China’s financial hub of Shanghai has ordered a three-day lockdown of some of its steel warehouses from July 26 after a residential neighbourhood in the district was classified as high risk following the detection of a coronavirus case there.

Comments

Comments are closed.