BEIJING: Iron ore futures rose for a fifth straight session on Monday, supported by a sharp fall in shipments from a major supplier and resilient steel exports in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange closed daytime trade 0.64 percent higher at 792 yuan (USD111.05) a metric ton.
By 0831 GMT, the benchmark October iron ore on the Singapore Exchange was up 0.53 percent at USD105.4 a ton, the highest level since July 24.
Shipments of the key steelmaking ingredient from one of major suppliers Brazil slumped by 5 million tons, or nearly 50 percent, from the prior week to 5.07 million tons in the first week of September, data from consultancy Mysteel showed.
“The sharp fall in Brazilian shipments was mainly because of scheduled berth maintenance at three ports; and Brazil ramped up shipment in the week before; normal shipments are expected to resume from September 9,” Mysteel analysts said in a note.
Additionally, China’s steel exports remained robust in August, partly offseting faltering demand in its domestic market dragged by the protracted property woes.
Many Chinese steelmakers have managed to make money so far this year after suffering losses in the past two years, in part thanks to strong steel exports. Healthy margins encouraged mills to sustain a high operating rate, leading to steady needs for raw materials.
However, a sharper-than-expected fall in hot metal output, a gauge of iron ore demand, raised cation among investors, limiting price gains.
Other steelmaking ingredients, coking coal and coke rose 1.42 percent and 0.22 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar ticked up 0.19 percent, wire rod nudged up 0.09 percent, hot-rolled coil added 0.96 percent and stainless steel advanced 0.67 percent.
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