Iron ore futures climbed on Thursday, supported by improving demand sentiment in the market.
Steel production in China is expected to rebound following the lifting of temporary environmental output curbs that were imposed ahead of key political meetings in Beijing. Demand is also likely to improve during the spring construction season, further strengthening the near-term outlook for iron ore.
Prices also received support from reports that China’s state-backed buyer, China Mineral Resources Group (CMRG), has restricted purchases of certain iron ore products from BHP amid a prolonged contract dispute.
Meanwhile, Chinese steel traders said sentiment in the domestic market is gradually improving. However, export prospects remain uncertain due to tensions in the Middle East, which have led some suppliers to suspend offers to the region while also causing volatility in freight rates.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 1.34pct to 795.5 yuan (USD 115.7) per ton. Coking coal and coke futures increased 2.13pct and 1.56pct to 1,153 yuan (USD 168) per ton and 1,727 yuan (USD 251) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures climbed 0.42pct to 3,120 yuan (USD 454) per ton, while HRC futures gained 0.37pct to 3,275 yuan (USD 477) per ton. Wire rod futures slipped 0.21pct to 3,339 yuan (USD 486) per ton, while stainless steel futures rose 0.88pct to 14,285 yuan (USD 2,079) per ton.
1 USD / 6.87 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,339.00 | ▼ -0.21 | ▼ -0.24 |
| Hot Rolled Coils | 3,275.00 | ▲ 0.37 | ▲ 0.18 |
| Rebar | 3,120.00 | ▲ 0.42 | ▲ 0.16 |
| Stainless Steel | 14,285.00 | ▲ 0.88 | ▲ 0.49 |
| Iron ore | 795.50 | ▲ 1.34 | ▲ 1.01 |
| Coke | 1,727.00 | ▲ 1.56 | ▲ 0.52 |
| Coking Coal | 1,153.00 | ▲ 2.13 | ▲ 0.74 |
