Iron ore futures rose on Tuesday, supported by sharply higher freight costs amid escalating tensions in the Middle East.
Freight rates have surged following the dramatic escalation of conflict in the region, which has significantly curtailed vessel movements through the Strait of Hormuz, one of the world’s most strategic shipping corridors. The geopolitical instability has also driven global oil and gas prices higher, resulting in increased bunker fuel costs for carriers.
At the same time, the risk of military attacks has prompted many shipowners to suspend voyages or reroute vessels, tightening shipping capacity and pushing insurance premiums sharply higher.
Analysts noted that these combined logistics pressures have lifted delivered iron ore costs, providing price support even as underlying domestic demand in China remains relatively subdued.
Market participants are closely monitoring China’s annual parliament meeting beginning this week, where authorities are expected to outline policy priorities under the upcoming 15th Five-Year Plan.
However, gains in iron ore were capped as Chinese steel mills face temporary output restrictions to ensure air quality during the parliament session. Higher portside iron ore inventories also continue to limit upside momentum.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.87pct to 753.5 yuan (USD 109.2) per ton. Coking coal and coke futures increased 4.01pct and 3.42pct to 1,127 yuan (USD 163) and 1,694 yuan (USD 246) per ton, respectively.
On the Shanghai Futures Exchange, rebar and HRC were little changed, closing at 3,074 yuan (USD 446) and 3,219 yuan (USD 466) per ton, respectively. Wire rod edged down 0.12pct to 3,336 yuan (USD 483), while stainless steel fell 0.39pct to 14,185 yuan (USD 2,055) per ton.
1 USD / 6.9 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (%) | Difference from Previous Morning Session (%) |
|---|---|---|---|
| Wire Rod | 3,336.00 | ▼ -0.12 | ▼ -0.24 |
| Hot Rolled Coils | 3,219.00 | ▼ -0.03 | 0.00 |
| Rebar | 3,074.00 | ▲ 0.07 | ▲ 0.23 |
| Stainless Steel | 14,185.00 | ▼ -0.39 | ▼ -1.41 |
| Iron Ore | 753.50 | ▲ 0.67 | ▼ -0.13 |
| Coke | 1,694.00 | ▲ 3.42 | ▲ 2.48 |
| Coking Coal | 1,127.00 | ▲ 4.01 | ▲ 2.93 |
