Iron ore futures rose on Monday, recovering from earlier losses as a sharp jump in oil prices and freight costs linked to escalating Middle East tensions supported the market, though underlying demand concerns continued to cap gains.
Brent crude climbed to nearly USD 80 per barrel from USD 70-72 last week following missile attacks near the Strait of Hormuz, prompting major carriers to impose additional surcharges on cargoes transiting the Arabian Gulf. Higher crude prices are expected to lift freight premiums for Brazilian and Australian iron ore shipments to China, raising import costs and offering near-term support.
Iron ore also found support from restocking expectations, as in-plant inventories have fallen to relatively low levels and steel production is likely to gradually pick up, according to analysts.
However, high port inventories and the prospect of output curbs ahead of key policy meetings remain major headwinds, suggesting prices may see short-term strength before facing renewed pressure.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.87pct to 754.5 yuan (USD 109.6) per ton. Coking coal and coke futures gained 1.06pct and 1.38pct to 1,094 yuan (USD 159) and 1,652 yuan (USD 240) per ton, respectively.
On the Shanghai Futures Exchange, rebar increased 0.26pct to 3,067 yuan (USD 446) per ton, HRC added 0.34pct to 3,219 yuan (USD 468), wire rod edged up 0.24pct to 3,344 yuan (USD 486), and stainless steel climbed 1.91pct to 14,385 yuan (USD 2,090) per ton.
1 USD / 6.88 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (%) | Difference from Previous Morning Session (%) |
|---|---|---|---|
| Wire Rod | 3,344.00 | ▲ 0.24 | ▼ -0.06 |
| Hot Rolled Coils | 3,219.00 | ▲ 0.34 | ▲ 0.03 |
| Rebar | 3,067.00 | ▲ 0.26 | ▲ 0.13 |
| Stainless Steel | 14,385.00 | ▲ 1.91 | ▲ 0.83 |
| Iron Ore | 754.50 | ▲ 0.87 | ▲ 0.80 |
| Coke | 1,652.00 | ▲ 1.38 | ▲ 0.48 |
| Coking Coal | 1,094.00 | ▲ 1.06 | ▲ 0.37 |
