Iron ore futures rose slightly on Thursday, supported by concerns over supply disruptions in Australia following the closure of key ports in the Pilbara region due to a tropical cyclone.
Pilbara Ports said operations at the ports of Ashburton, Cape Preston West, Dampier and Varanus Island were suspended as Tropical Cyclone Narelle approached the coast. Port Hedland, the world’s largest iron ore export hub, remained operational.
Iron ore futures were also supported by expectations of increased restocking by Chinese steel mills as blast furnace maintenance eases and steel output improves. Daily crude steel output among China Iron and Steel Association (CISA) member mills rose 0.8pct in the March 11-20 period to an average of 2.03 mln tons per day, although it remained down 6.5pct YoY.
However, gains were limited by environmental-related production restrictions in Tangshan, raising concerns over reduced iron ore demand. Higher port-side inventories also continued to weigh on the market outlook.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.18pct to 817 yuan (USD 118.2) per ton. Coking coal and coke futures declined by 1.13pct and 1.18pct to 1,230 yuan (USD 178) and 1,761 yuan (USD 255) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell 0.35pct to 3,128 yuan (USD 453) per ton, while HRC futures dropped 0.45pct to 3,305 yuan (USD 478) per ton. Wire rod futures edged lower to 3,322 yuan (USD 481), while stainless steel futures rose 0.31pct to 14,390 yuan (USD 2,083) per ton.
1 USD / 6.9 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,322.00 | ▼ -0.12 | ▼ -0.06 |
| Hot Rolled Coils | 3,305.00 | ▼ -0.45 | ▼ -0.24 |
| Rebar | 3,128.00 | ▼ -0.35 | ▼ -0.13 |
| Stainless Steel | 14,390.00 | ▲ 0.31 | ▼ -0.69 |
| Iron ore | 817.00 | ▲ 0.18 | ▲ 1.29 |
| Coke | 1,761.00 | ▼ -1.18 | ▼ -0.85 |
| Coking Coal | 1,230.00 | ▼ -1.13 | ▼ -0.89 |
