SINGAPORE: Iron ore futures rose on Wednesday as anticipated recovery in hot metal output spurred demand for feedstocks, while lower shipments from top suppliers provided additional support.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 0.96percent at 788 yuan (USD114.76) a metric ton, as of 0317 GMT.
The benchmark April iron ore on the Singapore Exchange traded 0.49percent higher to USD104.25 a ton. Hot metal output is expected to recover following production restrictions during the annual parliamentary holiday, spurring demand for feedstock.
Prices of iron ore concentrate in Chinese iron ore hub Tangshan remained firm on tight supply, and the recent rally in iron ore futures boosted market sentiment, according to a note from the Shanghai Metals Market.
Lower shipments from China’s key iron ore suppliers Australia, Brazil, and South Africa also supported prices. However, record-high portside iron ore inventories are likely to cap gains.
China’s crude steel output is expected to fall by 4percent as authorities rein in excess steel capacity, a report from BMI issued on March 11 said. Lower export volumes of Chinese steel are likely to raise global steel prices marginally in 2026, but global prices are still projected to remain on a downward trend, the report added. Other steelmaking ingredients on the DCE were mixed, with coking coal down 0.44percent and coke up 0.18percent.
Steel benchmarks on the Shanghai Futures Exchange mostly advanced. Rebar gained 0.16percent and hot-rolled coil firmed 0.18percent. Meanwhile, wire rod was little changed and stainless steel shed 0.81percent. Curbs in excess production for hot-rolled coil and rebar supported prices, the report from BMI said.
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