SINGAPORE: Iron ore futures extended gains to the fourth consecutive day on Thursday, supported by steady demand as hot metal production held at elevated levels, while the Singapore iron ore contract slipped on easing energy costs.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange traded 0.62 percent higher at 817 yuan (USD120.10) a metric ton.
The benchmark June iron ore on the Singapore Exchange eased 0.12 percent to USD110.9 a ton as of 0704 GMT, marking a seventh straight day of gains.
Hot metal production is expected to peak in April, underpinning demand for iron ore, though rising prices have dampened transaction volumes, according to data compiled by LSEG and a note from the Shanghai Metals Market.
Easing upward resistance on iron ore prices amid steady destocking has reinforced market momentum, the note added.
Separately, workers striking over a pay dispute have halted mining since last week at two blocks of Guinea’s giant Simandou iron ore project operated by a consortium led by China’s Baowu Resources, four sources told Reuters.
Blasting, loading, hauling and dumping have stopped, although rail and port operations continue, according to a project consultant and two union representatives.
Simandou, home to the world’s largest untapped iron ore deposits, began exports in November after decades of delays and is expected to reach an annual capacity of 120 million metric tons of iron ore at peak output.
Other steelmaking ingredients on the DCE declined, with coking coal and coke losing 0.5 percent and 0.4 percent, respectively, tracking broader declines in energy market.