Iron ore futures rose on Wednesday on expectations of improved demand in the near term.
Market analysts expect China’s steel production to recover following the conclusion of the country’s annual parliamentary meetings, which could support iron ore consumption. Lower shipments from major iron ore suppliers and stronger domestic steel demand during the spring construction season are also providing support to prices.
Volatility in oil prices amid tensions in the Middle East has also lent some support to commodities. Higher energy costs and freight rates have pushed up production and transportation costs, contributing to the rise in futures.
However, the market continues to face headwinds from high iron ore inventories at major Chinese ports. In addition, a potential decline in Chinese steel exports this year, due to the newly implemented export licensing regime and growing protectionist measures against Chinese steel, could weigh on iron ore demand.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.9pct to 787.5 yuan (USD 114.6) per ton. Coking coal and coke futures increased 0.57pct and 0.73pct to 1,144.5 yuan (USD 167) per ton and 1,718 yuan (USD 250) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose 0.29pct to 3,115 yuan (USD 454) per ton, while HRC futures gained 0.28pct to 3,269 yuan (USD 476) per ton. Wire rod futures were unchanged at 3,347 yuan (USD 487) per ton, while stainless steel futures edged down to 14,215 yuan (USD 2,070) per ton.
1 USD / 6.86 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,347.00 | 0.00 | ▲ 0.15 |
| Hot Rolled Coils | 3,269.00 | ▲ 0.28 | ▲ 0.40 |
| Rebar | 3,115.00 | ▲ 0.29 | ▲ 0.35 |
| Stainless Steel | 14,215.00 | ▼ -0.18 | ▼ -0.07 |
| Iron ore | 787.50 | ▲ 0.90 | ▲ 0.44 |
| Coke | 1,718.00 | ▲ 0.73 | ▲ 2.18 |
| Coking Coal | 1,144.50 | ▲ 0.57 | ▲ 2.01 |
