SINGAPORE: Iron ore futures edged up on Wednesday after China reported its highest ever monthly imports of the steelmaking ingredient and record-high steel exports.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was 0.49% higher at 824.5 yuan ($118.17) a metric ton, as of 0326 GMT.
The benchmark February iron ore on the Singapore Exchange was up 0.29% at $108.65 a ton.
China’s steel exports hit a record monthly high in December, data from the General Administration of Customs showed, fuelled by front-loading driven by Beijing’s announcement of an export licence requirement for shipments from 2026.
Iron ore imports also hit a record high in December, as well as last year, as low inventories and improved steel margins encouraged mills to book more cargoes.
“With Chinese hot metal output firming in recent weeks, it’s clear mills have now begun replenishing steel inventories ahead of the Chinese New Year,” said Atilla Widnell, managing director at Navigate Commodities.
Such bullish conditions will persist until the Lunar New Year, he said.
However, persistently high iron ore prices, along with shrinking steel mill margins, might pressure buyers to hold off on restocking until a correction occurs, analysts said.
Other steelmaking ingredients on the DCE fell, with coking coal and coke down 0.66% and 0.26%, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground.
Rebar strengthened 0.32%, hot-rolled coil added 0.06%, wire rod gained 1.48% and stainless steel firmed 1.7%.
Comments
Comments are closed for this article.