SINGAPORE: Iron ore futures climbed on Wednesday as shipments from top exporters Australia and Brazil dropped, though persistent weakness in China’s property market capped gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.77% higher at 716 yuan ($99.91) a metric ton, as of 0357 GMT.
The benchmark August iron ore on the Singapore Exchange was up 0.86% at $94 a ton. On the supply front, iron ore shipments from top producers Australia and Brazil have declined, and global iron ore shipments decreased slightly, broker Everbright Futures said in a note.
Hot metal output, a gauge of iron ore demand, continued to increase month-on-month, Everbright said.
China’s factory activity returned to expansion in June, with official PMI and Caixin PMI data showing the highest output reading since November 2024.
Still, resale home prices in China fell at a faster pace in June, while growth new home prices slowed, underscoring persistent weakness in the country’s property market.
Meanwhile, analysts at ANZ noted that a proposal by the China Iron & Steel Association to restrict exports of certain steel products could keep more supply within the country, potentially pressuring prices.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.92% and 0.72%, respectively.
Steel benchmarks on the Shanghai Futures Exchange climbed. Rebar rose 1.44%, hot-rolled coil gained 1.12%, wire rod inched 0.45% higher and stainless steel was up 1.04%.
Comments
Comments are closed for this article.