Benchmark iron ore futures on the Dalian Commodity Exchange snapped a three-day slump to gain as much as 2.4% on Thursday, boosted by firm demand at steel mills as construction restarts speed up amid the government's consumption stimulus.
The most actively traded September contract of iron ore closed 2.0% higher at 711 yuan per tonne. Spot prices of iron ore with 62% iron content for delivery to China gained by $1 to $97 per tonne on Wednesday.
"Portside iron ore inventories have been continuously hitting new lows, the demand is supported by utilisation rates at mills," said a Beijing-based iron ore trader.
The trader said the market is also watching production and shipments data from Brazil, which could spur prices if the coronavirus situation worsens in the second-biggest iron ore supplier to China.
Construction steel rebar on the Shanghai Futures Exchange for October delivery rose 0.4% to 3,498 yuan per tonne. Hot-rolled coils (HRC) futures, used in cars and home appliances, ended up 1.2% to 3,447 yuan per tonne.
Dalian coking coal rose 0.3% to 1,159 yuan per tonne, while coke fell 0.3% to 1,855 yuan. Stainless steel futures for June delivery fell 0.8% to 13,060 yuan a tonne. Steel inventories held by traders fell to 15.49 million tonnes as of Thursday, data compiled by Mysteel consultancy showed.
China should control thermal coal imports and increase purchases of high-quality coking coal to meet environmental protection requirements, executives from two of the country's biggest steel producers said this week at the National People's Congress. to three-day fall.
Comments
Comments are closed.