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China’s iron ore futures rose on Friday, supported by near-term supply-side factors, although cautious steel demand continued to limit the upside.
A weekly decline in iron ore port inventories provided support to prices, while higher freight costs, driven by poor weather and elevated oil prices, added to the bullish sentiment.
Market sentiment turned slightly firmer, with traders noting some improvement in steel prices and continued support from higher production costs. However, steel mill profitability remains weak, while expectations for stronger seasonal demand have yet to translate into a significant pickup in consumption.
Market insiders said rising coking coal costs are likely to keep pressure on steel mill margins, potentially limiting further gains in iron ore prices.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 1.04pct from to 727 yuan (USD 108.2) per ton. Coke futures increased 0.60pct to 2,171 yuan (USD 323) per ton, while coking coal futures rose 0.66pct to 1,666 yuan (USD 248) per ton.
On the Shanghai Futures Exchange, HRC futures rose 0.54pct to 3,381 yuan (USD 503) per ton, while rebar futures increased 0.92pct to 3,166 yuan (USD 471) per ton. Wire rod futures gained 0.80pct to 3,406 yuan (USD 507) per ton, while stainless steel futures rose 0.11pct to 13,845 yuan (USD 2,060) per ton.
1 USD / 6.72 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,406.00 | ▲ 0.80 | ▲ 0.68 |
| Hot Rolled Coils | 3,381.00 | ▲ 0.54 | ▲ 0.38 |
| Rebar | 3,166.00 | ▲ 0.92 | ▲ 0.76 |
| Stainless Steel | 13,845.00 | ▲ 0.11 | ▲ 0.14 |
| Iron ore | 727.00 | ▲ 1.04 | ▲ 0.07 |
| Coke | 2,171.00 | ▲ 0.60 | ▲ 1.34 |
| Coking Coal | 1,666.00 | ▲ 0.66 | ▲ 1.02 |