Iron ore futures inched higher on Friday, supported by a firm near-term demand outlook, although rising supply concerns limited further gains.
Chinese steel mills continued restocking iron ore ahead of the May holiday period, while improving production levels supported consumption. Firm domestic steel demand, reflected in declining inventories of finished steel, also supported mill margins and underpinned iron ore prices.
Higher energy and freight costs linked to regional tensions in the Middle East provided additional cost support to the iron ore complex.
Market participants also noted that stronger semi-finished steel exports in April, partly due to the absence of lower-priced Iranian material, supported sentiment.
However, high portside inventories and increasing global supply continued to weigh on prices. Developments involving BHP and China’s state-backed iron ore buyer CMRG may further increase supply, adding pressure to the market.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.19pct to 786.5 yuan (USD 115.2) per ton, and was up 1.03pct compared with the close of last Friday.
Coking coal and coke futures declined by 1.06pct and 1.35pct to 1,258.5 yuan (USD 184) and 1,833 yuan (USD 269) per ton, respectively.
On the Shanghai Futures Exchange, rebar edged higher to 3,191 yuan (USD 467) per ton, while HRC slipped 0.15pct to 3,392 yuan (USD 497) per ton. Wire rod declined 0.34pct to 3,259 yuan (USD 477) per ton, while stainless steel increased 2.02pct to 15,185 yuan (USD 2,224) 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 | 3,259.00 | ▼ -0.34 | ▼ -0.46 |
| Hot Rolled Coils | 3,392.00 | ▼ -0.15 | ▲ 0.21 |
| Rebar | 3,191.00 | ▲ 0.06 | ▲ 0.31 |
| Stainless Steel | 15,185.00 | ▲ 2.02 | ▲ 1.84 |
| Iron ore | 786.50 | ▲ 0.19 | ▲ 0.38 |
| Coke | 1,833.00 | ▼ -1.35 | ▼ -0.14 |
| Coking Coal | 1,258.50 | ▼ -1.06 | ▲ 0.08 |