Iron ore futures rose further on Tuesday, supported by steady near-term restocking and firm steel demand.
Chinese steel production continued to improve on the back of healthy margins and stronger demand. Market participants also noted restocking activity ahead of the May holiday period as a key driver of iron ore demand.
A decline in inventories at major Chinese ports supported sentiment, although overall stock levels remain relatively high, limiting further upside.
At the same time, geopolitical tensions in the Middle East and disruption to the Strait of Hormuz provided additional support to prices due to rising energy and freight costs.
Chinese steel traders noted that domestic steel demand in China remains firm, which could continue to underpin iron ore consumption in the near term. However, rising raw material costs may pressure steel mill margins, potentially capping further gains.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.64pct to 784 yuan (USD 115) per ton. Coking coal and coke futures increased by 1.53pct and 2.48pct to 1,262 yuan (USD 185) and 1,838 yuan (USD 270) per ton, respectively.
On the Shanghai Futures Exchange, rebar rose 0.76pct to 3,176 yuan (USD 466) per ton, while HRC increased 0.72pct to 3,366 yuan (USD 494) per ton. Wire rod edged lower to 3,279 yuan (USD 481) per ton, while stainless steel fell 1pct to 14,805 yuan (USD 2,172) per ton.
1 USD / 6.81 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,279.00 | ▼ -0.09 | ▼ -0.52 |
| Hot Rolled Coils | 3,366.00 | ▲ 0.72 | ▲ 0.12 |
| Rebar | 3,176.00 | ▲ 0.76 | ▲ 0.13 |
| Stainless Steel | 14,805.00 | ▼ -1.00 | ▼ -0.81 |
| Iron ore | 784.00 | ▲ 0.64 | ▼ -0.32 |
| Coke | 1,838.00 | ▲ 2.48 | ▲ 5.44 |
| Coking Coal | 1,262.00 | ▲ 1.53 | ▼ -0.12 |