Iron ore futures moved higher on Monday, supported by rising oil prices and sustained steel production.
International oil prices climbed above USD 100 per barrel amid escalating US-Iran tensions after recent high-level talks ended without agreement. Higher oil prices have increased freight rates and fuel costs for mining and shipping, providing cost support to iron ore.
At the same time, declines in steelmaking raw material prices last week improved margins for Chinese mills, supporting continued production and near-term iron ore demand.
However, portside iron ore inventories remain near record highs, posing a key downside risk. Rising production costs could also weigh on steel output, limiting further upside in iron ore prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 1.26pct to 763.5 yuan (USD 111.7) per ton. Coking coal and coke futures increased by 0.66pct and 0.64pct to 1,066 yuan (USD 156) and 1,648.5 yuan (USD 241) per ton, respectively.
On the Shanghai Futures Exchange, rebar edged up 0.19pct to 3,100 yuan (USD 454) per ton, while HRC gained 0.21pct to 3,278 yuan (USD 480) per ton. Wire rod slipped 0.12pct to 3,254 yuan (USD 476) per ton, while stainless steel rose 0.69pct to 14,535 yuan (USD 2,128) per ton.
1 USD / 6.83 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,254.00 | ▼ -0.12 | ▲ 0.18 |
| Hot Rolled Coils | 3,278.00 | ▲ 0.21 | ▲ 0.15 |
| Rebar | 3,100.00 | ▲ 0.19 | ▲ 0.03 |
| Stainless Steel | 14,535.00 | ▲ 0.69 | ▲ 0.48 |
| Iron ore | 763.50 | ▲ 1.26 | ▲ 1.31 |
| Coke | 1,648.50 | ▲ 0.64 | ▲ 0.52 |
| Coking Coal | 1,066.00 | ▲ 0.66 | ▲ 0.94 |
