SINGAPORE: Iron ore futures prices edged higher on Monday, buoyed by resilient Chinese trade demand, though production restrictions in key steelmaking regions weighed on investor sentiment.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.2% higher at 766 yuan ($106.83) a metric ton, as of 0311 GMT.
The benchmark August iron ore on the Singapore Exchange was 0.27% higher at $99.55 a ton. Iron ore prices have been bolstered by macro news that is fuelling demand, said broker Everbright Futures. Top consumer China’s iron ore imports rose 8% in June as some miners increased shipments to hit quarterly targets, following a first quarter slump caused by cyclones in top supplier Australia. Stronger-than-expected steel demand boosted appetite for iron ore. China’s exports gained momentum in June while imports rebounded, as exporters accelerated shipments to take advantage of a fragile tariff truce between Beijing and Washington ahead of an August deadline. Australia’s Prime Minister Anthony Albanese on Monday affirmed his commitment to working with China to tackle global excess steel capacity and promote a sustainable and market-driven sector.
The steel sector has continued to climb, buoyed by positive investor sentiment amid expectations of supply-side reforms, while robust demand from the manufacturing industry has provided strong price support, said broker Galaxy Futures.
Still, Everbright also noted that environmental protection-related production restrictions in major steel production hub Hebei province caused a decline in molten iron output of blast furnaces by 10,400 tons month-on-month. Other steelmaking ingredients on the DCE traded sideways, with coking coal down 0.05% and coke up 0.66%. Steel benchmarks on the Shanghai Futures Exchange mostly fell. Rebar was down 0.1%, hot-rolled coil fell 0.12%, stainless steel dipped 0.35%, and wire rod climbed 1.13%.
Comments
Comments are closed for this article.